In the past, stock traders didn’t even think about investing in the marijuana industry. However, today’s smart and savvy investors realize that marijuana stocks are rapidly becoming one of the hottest tickets to add to portfolio management picks. Although medical and recreational marijuana are legal in many states, they’re still classified as Schedule I drugs under federal guidelines. Investors might face a few challenges until cannabis becomes legal on a federal level. Despite that, the marijuana industry is booming, and now is a great time to start investing in legal marijuana.
Recreational And Medical Marijuana Are Becoming Legal
As of January 2019, recreational marijuana is legal in 10 U.S. states as well as the District of Colombia. Medical marijuana is legal in 33 states. A recent poll cited that more than 62 percent of Americans support legalizing marijuana. As marijuana, cannabis-based products, and dispensaries become legalized, more big companies, as well as independent growers, farmers, suppliers, and shop owners, will be going public and offering stock investing options.
Legal Recreational Use Is Expanding Rapidly
By recent estimates, recreational marijuana sales might overtake medical sales by 2022. Marijuana sales are already superseding beer and cigarette sales, and the market for recreational use is expanding to women, seniors, and baby boomers. Remember, however, that because cannabis is still illegal at the federal level, marijuana businesses face a lack of banking resources. Once banks can accept money from the marijuana industry, legal marijuana will become even more profitable.
The Cannabis Industry Is Growing
Now is the best time to get involved with the legal marijuana business. Studies conducted that consumer spending on legal marijuana will reach $57 billion by 2027. The United States and Canada are the dominant countries for recreational marijuana, while the rest of the world might dominate the medical marijuana industry.
There are claims that legal marijuana is one of the fastest-growing industries in the United States. Financial backers of the marijuana industry invested more than $1.23 billion in the first quarter of 2018 alone. As the industry grows stronger, the high stock prices will only increase, so invest now while prices are lower.
Cannabis Technology Scales Businesses
As they cannabis startups grow, the technology and support services grow to meet the demand. With so much growth in the cannabis industry, companies are in need of robust software to sell products, manage suppliers and track inventory. On top of that, each company has to stay compliant with rapidly changing legislation and regulations. The startups that are investing in marijuana are using the latest technologies to scale their business quickly. As a result, these companies are really strong stocks to invest in.
You Can Diversify Your Stocks
The marijuana industry is growing and will continue to do so. When looking for the best marijuana stocks to invest in, look for companies that have been in business for an established amount of time, are transparent with their finances, and have minimal debt. Another consideration before you begin investing is to decide if you want to invest in a company that is primarily cannabis-based or is diversified with other products and companies. Consulting with an investment advisor will help you to determine which stocks are right for your investment portfolio.
It’s an exciting time to invest in the booming legal cannabis industry. Even if you don’t support marijuana use, the profit-making potential of investing in it is undeniable.