In short, the summer honeymoon is over.
Cannabis stocks tanked today after a summer of love, one could say.
July and August saw new highs -- never reached before when it comes to cannabis stocks.
That said: reality bites.
According to Canada's Financial Post, the manager of the first Canadian mutual fund focused exclusively on marijuana came out with some advice for investors, saying "get ready for some more “scary down days.”
“I wouldn’t be surprised if we saw a steep, sharp pullback, which will scare all the people that got in late, have a little bit of consolidation and then we start the next phase up,” Bruce Campbell, founder of StoneCastle Investment Management Inc., which has about C$150mln in assets told the Post.
In August, Canadian cannabis stocks rocketed upwards on the back of news, notably the fact that Constellation Brands (NYSE:STZ) will spend C$5bln to boost its stake in Canopy Growth Corp.
Canopy Growth Corp (CSE:WEED) shares rose slightly to C$57.79 in Friday morning trading.
The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, was down 2.23% at C$21.05.
Another significant player in the market, Aurora Cannabis Inc (TSE:ACB:CA), was down 3.13% at C$8.04.
Aphria Inc (TSE:APH:CA) shares fell 2.54%, at C$16.86.
Tilray Inc (NASDAQ:TLRY) shares were down 7% to US$111.38.
--Updated to reflect latest share price