Did You Give Up Too Soon on Marijuana Stocks?

The COVID-19 pandemic has wreaked havoc on the global economy. For most businesses, the struggle is continuing, while a few -- like those in the healthcare sector -- are comparatively secure, with the companies within working to fight the crisis. Healthcare might be a predictable safe space amid the pandemic, but there's one flourishing sector that's more of a surprise: marijuana.

The hype for the marijuana industry was intense during and after Canada's legalization of cannabis for recreational use in October 2018. In the U.S., medical marijuana is legal in 33 states and the District of Columbia, while recreational use is legal in 11 states and D.C. As legalization progressed, investors showed interest in emerging Canadian and U.S. cannabis companies.

However, the industry suffered in 2019 from a host of issues -- regulatory scandals, black-market sales, and many other factors. Stock performance took a nosedive. The struggles continued into 2020, and then the pandemic hit.