The ETFMG Alternative Harvest ETF (NYSEArca: MJ) is off to a strong start in 2019, gaining 21 percent year-to-date.
Like most U.S. equities, MJ got racked by the volatility in November and especially December as the ETF fell below its 200-day moving average. However, looking at the 6-month chart, MJ appears to be recovering as it creeps back to its 200-day MA.
As the major indexes were slightly down, MJ posted gains of 4 percent on Friday.
MJ and its cannabis stock holdings experienced exponential growth in 2018 and could see more of the same in 2019. Neal Gilmer, a research analyst with Haywood Securities, is projecting that the US cannabis market could be worth between US$15.9 and US$21.7 billion by the year 2022.
“We remain positive on the cannabidiol (CBD) market and believe that CBD could be removed from its Schedule I classification driving further adoption across the US and likely driving solid interest and investments from companies outside of the cannabis sector,” Gilmer wrote in a research note.