Are you looking to invest in medical marijuana stocks?
You may think that medical marijuana is not an ideal investment option nowadays. The recent legalization of its recreational counterpart did cause a few eyebrow raises, after all.
However, ever since its legalization in most states, recreational marijuana still doesn’t sell as much as medical marijuana. It’s even expected to outperform recreational marijuana up to 2025.
But is that reason enough to call marijuana a viable business? Should you invest in marijuana or are there too many risks?
To discover the answers, read what we have below. We’ll explain why investing in medical marijuana secures your financial future.
1. Stock Prices Will Explode Upon Legalization
Canada’s nationwide legalization started a chain reaction among other countries. Government officials around the world now discuss about its legalization in the open. This creates big opportunities for medical marijuana investors.
Why and how does this open opportunities?
First, because it’s known that when a country legalizes marijuana, its stock prices skyrocket. This is because demand increases by a significant amount once it becomes legal.
Look at Canada’s medical marijuana market.
Before it’s legalization, $600 million was the estimated market value. This increased by a large amount after their government passed the bill and marketers expect it to increase by an extra 55% of its total each year.
This makes medical marijuana more desirable in countries where it’s not yet legal. You can expect a great return in your investments if your country is on the verge of legalization. This also applies to states in the USA.
2. Cannabis Supplies Never Run Out
Several cannabis companies became active since marijuana’s legalization. Aurora Cannabis Inc., Canopy Growth Corp., Tilray Inc., Cronos Group Inc., Aphira Inc., and GW Pharmaceuticals PLC are the well-known ones.
These major companies produce enough medical marijuana to supply their users. There will even be a few thousand kgs left as surplus once everyone gets their prescriptions. This means there will always be stock for medical marijuana available.
Why is this important for investments? Because ensures that your investments never become volatile. There will only be a steady rise in your investments.
It’s a popular belief that dwindling supplies leads to an increase in a commodity’s price. This is true, but it doesn’t spell well for stock investments. Your investment’s supply thinning out may lead to stock prices becoming erratic.
Often, this results to stock prices lowering. This is because its value decreases when customers have a hard time getting a hold of the commodity. So, most people like members of the National Institute for Cannabis Investors find comfort in the surplus in production.
3. Multiple Options are Available When You Invest in Medical Marijuana Stocks
You may be having a hard time thinking of which marijuana stocks to invest in.
Good thing there are a lot of options you can choose from when investing in medical marijuana. Which type of stock will benefit your finances more depends on the area you’re in.
Cultivation Operations
Also known as “plant touching” companies, these are the ones who produce marijuana. Most of these companies lean to producing only one kind of marijuana. However, there are some who produce both medical and recreational marijuana.
Canopy Growth Corporation is a plant touching company. They brand and market their own produce as well. Most of them market their products through social media with the help of popular celebrities.
It’s a good idea to choose plant touching companies for short-term investments. With their presence in social media, you may see your investments go up in a short amount of time.
Biotech Industries
This type of marijuana stock focuses on the pharmaceutical benefits of marijuana. This is why most marijuana strains here are medical in nature.
GW Pharmaceuticals is one of the best companies in the biotech field. Like most companies in this field, they isolate different compounds of the plant.
They do this to test which compounds work well against different sicknesses and ailments. For example, how CBD oil helps in dealing with chronic pain.
Biotech companies all have FDA approval to experiment on cannabis’s different properties. So, should you choose to invest in one of them, you can be sure your investments are safe. You won’t have to worry about any illegal experiments endangering your finances.
Marijuana-Related Businesses
You can choose to invest in different marijuana-related businesses. Anything that uses branded medical marijuana for business goes under this category. These businesses can range from dispensaries to clothing lines.
This is what makes marijuana a diverse investment option. Your investments can reach different audiences. Those unintended consumers can also come from outside your operating areas.
Marijuana-related businesses can even go as far as managing real estate. This large a scale of reach allows for more investment opportunities in the future.
Also, this type of stock is second only to plant touching stocks. Your investments in this type of stock will be solid and sound.
There is also a sub-category is this type of stock that covers sin-related products. Big beer, alcohol, and tobacco companies contribute to this kind of stock.
Companies here plan on using the popularity of cannabis to market new products. Things like alcoholic drinks infused with cannabis oil are already in the works. They plan to ride the cannabis wave once it becomes legalized.
It’s also speculated that some tobacco companies plan to use marijuana as a substitute. This is because most people say it’s a healthier alternative to cigarettes. Also, because more people are starting to quit using cigars and cigarettes.
Secure Your Financial Future By Investing in Marijuana Today
Unsure if you should invest in medical marijuana stocks? Use this guide to find out why you should!
It takes time to make a profit off of your investments. So, what are you waiting for? Get started on your investments now!
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