How Will Weed Stocks Handle a Bear Market?

The great thing about sin stocks is that they’re resilient to bear markets. That’s because when things go pear-shaped, there’s always some consolation to be found in the bottom of a bottle. Nobody smokes fewer cigarettes in a bear market. If anything, people will smoke more and drink more. And they won’t necessarily switch to a cheaper substitute. Strong brand loyalty has been a long-standing feature of cigarette markets with brand loyalty rates of 85 to 90 percent. As for drinkers, the longer you drink, the more loyal you become, the more your liver hates you. The below chart from Statista shows that 40% of American drinkers who’ve been hitting the sauce for 10 years or more stick to the same brand.

That brings us to cannabis. The only way you can truly understand this market is to visit dispensaries on a frequent basis and observe what’s happening around you. We spent an extensive amount of time doing that, so we’re going to use our findings to gauge how a recession might impact weed stocks – particularly, multi-state operators (MSOs) in the United States.

A Bear Market for Weed Stocks

The value of a dollar today is increasing while the value of dollars in the future plummets. That means growth stocks are taking a hit across the board, and