Are you tired of having to monitor your investment portfolio every single day to see if global markets went up or down according to the geopolitical developments? Isn’t it frustrating losing your sleep over it? Investing in new products may be the solution for you. One of these solutions that can save you time and effort is investing in marijuana or if you prefer cannabis.
By now you may be wondering if marijuana is legal and if it is possible to invest in cannabis as multiple times you listen to news talking about arrests due to the use of this herb. The truth is that things have changed in recent years. Countries that have legalized the medical use of cannabis include Argentina, Australia, Canada, Chile, Colombia, Croatia, Cyprus, Germany, Greece, Israel, Italy, Jamaica, Lithuania, Luxembourg, North Macedonia, Norway, the Netherlands, New Zealand, Peru, Portugal, Poland, Switzerland, and Thailand. Countries that have legalized recreational cannabis are Canada, Georgia, South Africa, and Uruguay, plus eleven states and the District of Columbia in the United States and the Australian Capital Territory in Australia. The legality of cannabis for medical and recreational use varies by country, in terms of its possession, distribution, and cultivation, and (in regards to medical) how it can be consumed and what medical conditions it can be used for.
The number of firms related to the market of medical marijuana has rapidly increased in the last few years. According to New Frontier Research, which offers cannabis market research, the marijuana industry is expected to add 200,000 new jobs in the U.S. by 2020. For a long list of businesses, such as plant growers and packagers, medical and recreational marijuana dispensaries, growth is expected, not to mention companies that create products that use cannabis by-products called CBDs.
No other investment class, including marijuana stocks, creates as much curiosity and controversy. Within a decade, there was a drastic shift in public opinion against legalization from firmly opposed to mostly supporting. This is partly due to demographics, when older Americans in positions of influence are replaced by the more liberal millennials. Furthermore, executives and some analysts have said that there is still potential to take the alcohol and pharmaceutical industries away from business. The marijuana industry also points to the possibility of greater relations with alcohol firms, tobacco firms and nations abroad that loosen their marijuana laws. Hemp legalization in the U.S. has also led more of these companies— including Tilray and Canopy Growth — to seek arrangements to make hemp in the U.S. or to sell CBD products derived from hemp through mainstream retailers. Such movements could help boost sales of cannabis and destigmatize it.
Reading the data, investors see the growth dynamic related to medical marijuana and how it can benefit their investment portfolios. Although the products are relatively unknown to most people, adding shares of the production companies to your portfolios may hide opportunities for you to grow your wealth in an innovative way.