The Penny Stock Market Is Primed For Growth

Over the course of the past few years, there has been incredible overall growth for the economy with stocks seeing record gains but this growth has not stretched to the lower tiers of the market when dealing with OTC stocks trading on the penny stock exchange. While larger growth companies have flourished, we have seen small and micro-cap corporations stagnate with the only notable surges in growth stemming largely from the very many marijuana penny stocks that have come to the scene. But even these companies have come wrought with faults, with many of these fly-by medical marijuana companies being shut down for improper practices.

The most significant boon that we have seen come to the penny stock market came in early 2014 when stock newsletter groups like Dream’s penny stock alerts, saw incredible growth in the medical marijuana sector, with over one thousand percentage point gains every month, for the first 4 months of that year. Since then the OTC market has taken a beating, with far less dollar volume traded and decreased interest, with many traders still focusing on the marijuana companies in hopes that the expectations of coming legalization will come to fruition and send the sector back up to where it once was.

The reason for the slowdown with OTC investments, stems mainly from the fact that there has been heightened regulation causing many of the organizations that worked to raise awareness to penny stocks to shut their doors and pushing much of the dollar volume into more secure investment opportunities. An interesting aspect of the Obama White House, was that while their decision making was great for supporting the overall economy, the heightened regulation of business actually served to hurt micro-cap corporations due to less awareness initiatives and also greater difficulty for these smaller companies to find proper financing.

With Donald Trump having taken the helm as President many economists fear that the overall economy could potentially be thrown into chaos but regardless of what does occur, his deregulation strategy will likely bring a substantial boon to penny stocks, that will no longer be crushed under the prior regulatory systems that have been in place. While larger companies trading on the NYSE, NASDAQ, AMEX, etc, are able to sustain heavy regulatory measures, small and micro-cap corporations have not been quite so lucky, so it will be very interesting to see what strengths will be seen in OTC growth over these next few years.