Amid the rising concerns regarding the rapid spread of the omicron coronavirus variant and skyrocketing inflation levels, cannabis legalization at the federal level doesn’t seem to be a top priority of the government right now. Thus, fundamentally weak cannabis stocks Green Thumb Industries (OTC:GTBIF), Canopy Growth (NASDAQ:CGC), Planet 13 Holdings (OTC:PLNHF), and Flora Growth (FLGC) might witness a sharp pullback given the market volatility. So, these stocks are best avoided now.President Biden has been a long-standing advocate on the decriminalization and eventual legalization of marijuana. Roughly 60% of U.S. adults believe that marijuana should be legalized for medical and recreational purposes. Republicans have also joined this bandwagon, with rep Nancy Mace proposing the States Reform Act.
However, amid surging inflation levels and the resurgence of COVID-19 cases, cannabis legalization doesn’t seem to be a priority of the U.S. government right now. Many cannabis company CEOs are not expecting marijuana to be federally legalized in the United States in 2022.
Given this backdrop, it could be wise to avoid fundamentally weak cannabis stocks of Green Thumb Industries Inc . (GTBIF), Canopy Growth Corporation (CGC), Planet 13 Holdings Inc. (PLNHF), and Flora Growth Corp. (FLGC).