With all the news surrounding marijuana and its cousin, hemp, cannabis stocks are quickly becoming an investment to seriously consider adding to your portfolio.
The Future Looks Bright for MMJ Stocks
The value of marijuana stocks has skyrocketed over the past five years as state after state decriminalized and legalized the use of marijuana for both medicinal and recreational purposes.
- California, alone, is expected to add an estimated $5 Billion to its economy in 2018 due to legalizing recreational cannabis.
- The pot industry is set to add 350,000 new jobs over the next two years.
- The medical marijuana industry is estimated to gross $55 Billion by 2025.
The explosion in growth of the marijuana industry has led to equal growth in weed stocks in both the US and Canada.
The legalization of cannabis, especially for recreational use, has opened up the opportunity for it to be publicly traded just like any other commodity. And with new and growing companies comes an opportunity for the savvy investor to grab-up stocks while the prices are still low.
Some of the best pot stocks have experienced quite a bit of growth over the past few years. Some of the top investments include: Medical Marijuana, Inc. (MJNA), Nemus Bioscience (NMUS), Vape Holdings, Inc. (VAPE) and Terra Tech Corp. (TRTC)
The cannabinoid biopharmaceutical developer Nemus Bioscience recently joined forces with Emerald Health Services Inc. The Canada-based EHS agreed to loan Nemus $1.4 million which will convert to shares on June 30 of this year. They also have the option to by more shares at 10 cents which makes this a good investment now as the price can be expected to rise come summer.
Are Pot Stocks Here to Stay?
With the legalization of pot comes a more mainstream acceptance of it’s legitimacy for both medicine as well as solid investments for those looking to expand their portfolio.
There are many strong indicators that the emerald-rush is just getting underway. Take a look at some of these key points before deciding on which weed stocks you wish to invest.
- A total to 24 states have legalized cannabis for medical use.
- 9 states + Washington D.C. have legalized recreational marijuana.
- Market research indicates the legal marijuana market in North America grew 17%, up to a value of $5.4 billion, during 2015.
- In 2016 the legal marijuana market grew to $6.7 billion, an increase of 30% from the previous year.
- The explosive growth of the legal marijuana market has only ever been since twice in recent history, with cable TV (19%) in the 1990’s and broadband internet (29%) in the early 2000’s.
- 21% of the total U.S. population now live in areas of legal adult use markets.
Legalization is Sure to Keep Marijuana Stocks on the Rise
The fact that states are legalizing pot nearly on a monthly-bases, is more evidence that the green-wave for cannabis stocks is only going to continue to surge. Just this week, Vermont Governor Phil Scott signed into law a bill that legalizes adult possession and limited cultivation of marijuana.
Vermont is the ninth state to legalize marijuana and the first to do so by way of the legislature.
There are ten additional states seriously considering the decriminalization and legalization of cannabis and its products in 2018, including:
- Connecticut, Delaware, Illinois, Maryland, New Hampshire, New Jersey, and Rhode Island (all through legislation)
- Voters in Michigan will take to the polls this November to vote on regulating marijuana like alcohol.
- The New Hampshire House passed a similar bill to the one just signed in Vermont.
There is no doubt 2018 will be a growth year for the marijuana stocks and industry alike. With the addition of some major markets opening up via California, which officially opened their recreational pot market at the first of the year; Massachusetts, where weed sales are expected to get underway this summer; and Florida, which released the license applications for medical marijuana treatment centers this past fall.
No other market has grown more than cannabis stocks.
That’s right, the growth that the cannabis industry has seen has even surpassed that of the famed dot-com boom during the 1990’s. Back then the GDP jumped up 22%, but even that percentage doesn’t seem as substantial when compared to the 30% spike seen in the pot industry in 2016.
Considering this immense growth and the numerous other positive indicators, investing early in MMJ stocks is no doubt a wise move.