In February 2018, I observed the cannabis stocks were transitioning from the first stage of the bull market to the second stage. I said investors should adjust their portfolio strategy.
I explained my view that the stock market and cannabis stock market cycle can be separated into three stages:
The first is the bull market dynamic phase, which is an uptrend with few corrections.
The second stage is the trading phase during which prices still rise but at a slower overall rate of gain and increased volatility.
The third stage is the bear market that is a downtrend with few rallies of any size. Bear markets are shorter than bull markets and do not give back all of the previous bull market gains.
Today, I think it is clear that we are in stage two, and we may be transitioning into stage three or the Bear market. I realize the “B” word might strike fear into the heart of investors, but don’t let it happen. This is nothing more than another transition that implies a different set of policies that should guide your investment strategy.
In other words, we’re still rising in stocks, but it may not be long before there’s a decline. Keep an eye on your investments! Read the article for a more detailed analysis.