US legal psychoactive cannabis operator index falls for 9 consecutive months
During the 3rd quarter of 2021, the index lost 22.8%, and in the 4th quarter it declined by 17.8%. Thus, at the end of 2021, the index of American operators of legal psychoactive cannabis fell to a record low of 44.75.
On the pages of the specialized electronic edition of national cannabis growers, more than once the attention of our dear readers and listeners has been focused on the fact that the legal psychoactive cannabis market in a number of economically developed countries of the world is currently struggling with the problems of overproduction. It is no secret that companies operating in this market in the United States suffer in 2021 the same ailments as similar enterprises in Canada or Holland. These tendencies are most clearly demonstrated for three years now by the operating securities market of American companies specializing in the legal work with psychoactive cannabis in the United States, which trade their shares at open auctions - the so-called American Cannabis Operator Index.
A superficial analysis of this market, shown below in the form of diagrams prepared by American specialists, puts another stone in the piggy bank of understanding that the modern US cannabis sector, which specializes in working with legal psychoactive cannabis, is in a depressed state for almost all of 2021. For example, in October 2021, the index of American legal psychoactive cannabis operators fell to an all-time low of 44.75. It should be noted that during the 3rd quarter of 2021 the index lost 22.8%, and in the 4th quarter it decreased by 17.8%. Thus, the index of legal psychoactive cannabis operators in the United States falls for 9 months in a row.
The index, which “launched” at the end of October 2018 at 100, peaked at 124.16 a week later and then declined to 70.64 at the end of December 2018. Despite the “price swing”, the next peak was noted in early April 2019, when it climbed to the level of 119.53.
The index currently includes 18 companies, including 13 legal psychoactive cannabis operators in the United States. The dynamics of growth / decline in the value of securities for the last month above those indicated by the company is shown below.
The Effectiveness of US Legal Businesses for Psychoactive Cannabis
Commentary of the specialists of the Association "Ukrainian technical hemp"
It should be understood that the exponential growth of the legal psychoactive cannabis market (as well as the use of hemp-based pharmaceuticals) traditionally continues for the first 9-18 months. In the future, it is traditionally prone to crises of overproduction and reduction to a certain level, which presupposes the necessary use of the amount of produced raw materials by end consumers. It is not very reasonable to consider the possibilities of investing significant financial resources in such assets being formed, when the regulatory and legal framework lobbied by foreign companies predetermines the opportunities for working on the market, first of all, for non-Ukrainian companies that are “at home” suffering from the overproduction crisis. In situations of this kind, government protectionism is needed, shaping the rules of the game in the domestic market in such a way that national companies are at least competitive in comparison with foreign corporations lobbying for changes in their own interests.