Last year was a banner time for the legal cannabis industry, and that showed in the Cannabis Stock Index, which grew 236% in the latter half of 2016.
The Cannabis Stock Index was developed by Viridian Capital Advisors, which offers financial and consulting services for marijuana businesses. According to an article on Entrepenuer.com, the index keeps track of around 5o publicly traded companies from the legal cannabis business. To make it onto the index, these companies must have at least a $10 million market capitalization, an average daily trading volume of at least $20,000, outstanding shares of at least 25 percent, and must have filed financial reports for the last six months.
The robust gains of 2016 included nearly 31% in the third quarter, and 155% in the fourth, as multiple states voted to allow recreational cannabis.
The index was flat for the first half of 2016, and has gained 7% so far 2017, mostly in January.
Investors seem convinced of the future for legal pot, even with the Trump administration continuing to avoid a definite stance on the subject.