There’s no mistaking that smells in the air, and we’re not talking about pot. 2018 is weeks away and the aroma that investors are noticing is money. A recent article from investment media outlet The Motley Fool states that marijuana stocks are going to soar next year.
One of the main reasons this prediction will become a reality is due to the state of California.
On January 1, 2018, Californians are scheduled to enjoy recreational marijuana for the first time. The Golden State is the most populous in the USofA, and they have had medicinal cannabis for over twenty years.
A further reason to make cannabis stocks your early Christmas present is the great country of Canada. Unless you’ve been living in a cave, you are aware that Canada is in the process of legalizing recreational cannabis on a national level.
If all goes well, legal pot will be in the hands of adult Canadians by July 2018 and the products will have more demand than a water fountain in the Mojave desert. The need for this weed will fall on the shoulders of Canada’s licensed producers, which will spell profits for anyone who buys into the right company.
Another telltale sign that the cannabis industry is spreading its wings, is consolidation. There are now many companies from various sectors who are looking to create a presence in this newly minted miracle crop. Because of the multitude of players, partnerships and takeovers have become the norm, which has driven stock prices higher in many cases.
Finally, and perhaps most importantly, the reason the cannabis industry will continue to expand is that new medical applications are being found all the time. These medicines include treatments for epilepsy, MS, cancer, anxiety, depression, nerve pain, ADHD and a constantly growing list of other conditions. Cannabis was used as a medicine for thousands of years before it was mistakenly prohibited, so we are now rediscovering all that the incredible medicine can do.
For these reasons and various others, cannabis stocks should be highly considered.
But how do you know which ones to choose?
One thing investors should look for, perhaps more than anything else, is value. Many cannabis companies who trade in the markets have aggressively sold shares and spread themselves a little thin. Investors should look for corporations that have strong business development plans, but have been conservative on their shares.