The Hemp Industry Is On The Rise, Stocks Soon to Follow
Many are wondering about the price of hemp and its relation to the stock market. While this is a fairly new trade to the stock market, it’s still important for investors to know where they stand.
Most are asking if it might be time to buy or sell stock based on the market forecast. Here’s a look at a few points from stock market views to help you decide if it might be time to buy or sell your hemp stock.
Cannabis vs. FDA
Due to an upcoming hearing (Friday, June 1, 2019), the cannabis (or hemp) market has changed drastically. While most stocks were higher after this announcement, there were still some stocks that decreased. The hearing will be used as a platform for the FDA to hear all sides of views pertaining to the use of CBD in prescription drugs.
While this is a great source of debate, and has been for some time, this hearing is not being considered as the final decision about this topic. This open forum is meant to discuss the pros and cons and allow the FDA a look at both sides in order to make their final decision later. Despite this being an open forum, it has clearly made an impact on hemp stock in a positive way.
Hemp Stock Flux
Despite the FDA open forum raising the hemp stocks for now, there has not always been such a consistent flow of stock market rise and fall for hemp stock. Throughout the past year, hemp has increased by 10%, but it wasn’t always doing so well. In 2017, the market lost 3% of it’s hold in the stock market. By 2018 it was up 2%, but as of the past year it has increased to 10%.
This market is clearly still working out some of its kinks, but it also has many rivals to compete with for that tops spot on the market. With such large rivals out there, it makes the decision to buy or sell a difficult one.
Hemp has three main competitors, although there are more out there who just may not be as large yet. These three competitors are the largest in the cannabis industry and could be the best way for hemp to fall in the future.
The main competitors for hemp are as follows:
- Future Farm Technologies
- Aerogrow International
- Scotts Miracle-Gro
These companies are not struggling for a top spot in the stocks as much as hemp and this could result in the uprising of other companies in their place.
Based on past and present stock exchange numbers, it is likely that hemp will not be increasing its hold in the stock market for future exchanges. Due to the continuous changes in stock from previous years, it has been predicted that future stock may be reduced by 2.346% from where it stands as of May 30, 2019.
While the stock is expected to fluctuate throughout the next year, it is anticipated to drop by a substantial amount this time next year. Many stock market followers would indicate this change to be a factor in whether they choose to purchase or sell their hemp stock, but there may be other factors to consider as well.
Predictions vs. True Change
The stock forecast is merely a prediction of what could be for future stocks. The truth behind hemp stock is that the company trades on pink sheets, which determines a poor cash flow for business. Due to this damaging fact, it is more likely that hemp will be out of the market before too long, based on research and stock exchange information.
While it is not likely this change could occur soon, or even this year, it is likely that it will happen. Some predictors believe the best hemp could do in future stocks is zero. Clearly, this is not something any stock market follower wants to hear; but, unfortunately, it’s the cold truth of the market. Without much revenue to back up stock prices, there’s no way for the company to change for the better in future exchanges.
Based on multiple factors, hemp could decrease to zero in the market or it could increase to a top spot in the stocks. Unfortunately, this is such an unknown in any stock market that predicting the future of hemp is quite difficult. If you choose to base it on past market information, the trend would see the continuing decline of hemp overall; however, due to the unpredictability of the stock market and cash flow for any business, it is still possible for hemp to make a comeback.
Many stockholders and followers would like to know for certain what they might be getting into or out of if they buy or sell stock of any company, but especially hemp. The truth of the matter is, there is no guarantee. Anyone could buy stock one day and it could drop the next. Or they could sell it and watch it rise the next day. Regardless of what might happen, stock exchange is always a risk and some may not be willing to take it.
The important thing to remember is, despite predictions, stock market prices could do the opposite of what’s predicted. It has never been a known or exact science when it comes to predicting exactly how the numbers will fall. While the choice is ultimately yours, it’s important to verify that any sources you use for a stock market forecast are credible. Otherwise, their predictions may not provide much insight as to what may be your best course of action.
To buy or to sell; the choice is ultimately yours. The question is, how big a risk are you willing to take in the stock market? If it’s not big enough, you may be looking at losing a substantial amount more than you had originally planned. Always remember to be smart about your stock buying and selling choices.