Dan Ahrens of AdvisorShares spoke to INN about his takeaways from 2021 in the cannabis investment space.
Expert: Cannabis Investments Need US Reform in 2022 youtu.be
As the year wraps up, one of the top cannabis investment experts breaks down his 2021 highlights and the expectations investors should have for 2022.
The Investing News Network (INN) sat down with Dan Ahrens, chief operating officer and portfolio manager with AdvisorShares, to get his perspective on what investors will remember about 2021 and what's next in the space.
Ahrens, an author and manager of two noteworthy cannabis public funds — the AdvisorShares Pure Cannabis ETF (ARCA:YOLO) and the AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) — is encouraged by what's ahead.
The industry has gone through a challenging period since the highs seen near the start of the year. According to Ahrens, the possibility of political changes at the federal level in the US initially built momentum. However, that anticipation has instead led to frustration over progress in the country.
Ahrens spoke candidly about the irritation he has felt watching the political path for cannabis in the US after seeing so much excitement for both Joe Biden's presidential win and a critical run-off election at the Senate that gave Democrats an edge in the government chamber.
"Cannabis started with a big run-up in January and February … and things dragged from there," Ahrens said.
As of November 23, both MSOS and YOLO had seen double-digit drops year-to-date in the stock market, with MSOS down nearly 30 percent and YOLO dipping over 16 percent.
The exchange-traded fund manager said investors need to understand that volatility in the cannabis space will continue to be present. "It can drag on for quite awhile and be very painful," he said.
Despite the challenges of the year, Ahrens is encouraged by the maturity displayed by US operators in particular, which in his view are in desperate need of federal reform to elevate into the next phase.
"There's been a big, big separation between company performance, between the actual financials, revenue growth quarter-over-quarter and year-over-year, vs. the stock price," Ahrens told INN.
Watch the full interview above to hear the rest of Ahrens' thoughts on cannabis investments and what's ahead in 2022. You can also click here to watch the rest of the videos on our YouTube channel.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.