As the popularity of cannabis grows across the world and more countries start to legalize or, at the very least, decriminalize its use, the popularity of cannabis stocks has risen significantly as well. What seemed like a questionable investment a few years ago seems like an extremely sound decision nowadays as a variety of cannabis stocks have shot through the roof and, considering the growth trajectory of cannabis across the world, there’s absolutely no doubting the fact that cannabis stocks are likely going to remain a worthwhile investment for the time to come. In this article, our goal is to shed some light on some of the key reasons why you should consider investing in cannabis stocks and capitalize on the incredible growth that the cannabis industry is seeing nowadays.
1: The Demand is Constantly Booming
There is absolutely no doubting the fact that the demand of cannabis has steadily and consistently been growing over the past couple of years an in recent times it has absolutely boomed. Although cannabis has been persistently shunned by an array of countries across the world in the past, this trend is slowly changing with time and, as the legalization and decriminalization of cannabis has started increasing across the world, so has the demand of cannabis. Alongside all this, the perception of cannabis has also become drastically more positive over the years which, in turn, has caused the demand to go up even further.
Perhaps the prime example of all this is the state of Colorado in the United States. Ever since cannabis was legalized in Colorado for both recreational and medical reasons, the demand has gone up by an exponential amount and the cannabis business has certainly started to boom. Even in spite of the entire Coronavirus affair and the lockdown, the cannabis industry still remained insanely popular as cannabis has been regarded as an essential item during the course of the lockdown which, in turn, allowed it to surpass over 200 million US dollars in sales in June. There was even a boom from CBD to be used against Coronavirus.
From all of this it’s clearly evident that the demand for cannabis is extremely high and, given the current trends across the world, there’s no doubting the fact that it’s going to remain high for the foreseeable future.
2: Solid Long-Term Investment Opportunity
Although lots of investors have recently started to divert their attention towards cannabis stocks as it’s enabled quite a few people to make quick profits, lots of people overlook the fact that cannabis stocks are actually among the best long-term investment options available today. With the legalization of cannabis across the globe, the demand has steadily been on an upward trend and, as mentioned earlier, it’s likely going to continue this way. Grand View Research even published a report highlighting how the global cannabis market might end up surpassing 70 billion US dollars by 2027 which represents a compound annual growth rate (CAGR) of 18%. This is certainly huge news as previous forecasts showed the market only surpassing 50 billion but this is no longer the case as the demand for cannabis has gone up so rapidly.
Alongside these stellar numbers, there’s also the fact that cannabis itself has become a much more widespread product that’s started to see a variety of new uses nowadays that didn’t exist before. For instance, cannabis inspired beers have started to become quite popular recently and, while this might be a fairly new concept, it’s certainly an innovative one and demonstrates how cannabis can be used for so much more than its current utilization so, all things considered, the future certainly looks good for cannabis.
3: The Market is Relatively Untapped
A lot of stocks, though they’re certainly worthwhile investments on paper, simply aren’t worth it as every single person knows about them and their benefits so they no longer remain attractive investment options but, cannabis stocks, on the other hand, are still a relatively new concept to the world. Considering the fact that cannabis has only recently started to be legalized across the world, there’s certainly an adjustment period before cannabis stocks start to become common knowledge which is why, at this current moment, it’s fair to say that the cannabis market is pretty much untapped as of this moment and those who get in on the opportunity to invest in cannabis stocks now are likely going to be rewarded for being early adopters.
It’s worth mentioning, though, that this is something that won’t last particularly long as cannabis is rapidly growing its presence on Wall Street. There was a time when there was a certain stigma associated with cannabis that made even the most bold investors a bit nervous to touch any stocks that even related to cannabis in one way or another but, as of right now, there are multiple different cannabis stock listings on the US stock market which goes to show just how far cannabis adoption has come over the years. Even a variety of large stock brokers who are big players in the market have started covering cannabis stocks as the demand for these is rapidly growing up and investors nowadays are much more comfortable investing in these as compared to how it was in the past when there was a stigma associated with cannabis as a whole.
Keeping all this in mind, it’s important to keep in mind that it’s best to get in on the investment opportunity as early as possible before everyone begins to jump on the trend and the market ends up becoming saturated.
4: Enormous Growth Potential Through New Applications
As mentioned above, we’ve started to see a variety of new ways through which cannabis can be utilized but this is likely just the tip of the iceberg as we’ve only just entered this territory and don’t yet know what it holds for us. Although there are currently quite a few creative companies out there putting cannabis to great use through clever ways, there’s no doubting the fact that there’s likely so much more that we’ve yet to discover about cannabis.
Keeping the aforementioned information in mind, it’s fair to assume that there’s still potential left for exponential growth within the cannabis industry as we move forward and uncover exciting new ways through which we can use cannabis to put together an array of products that may have medical or recreational uses. Right now, we’ve started to see diffusers and such that help utilize cannabis in a variety of efficient ways but we can say with absolute certainty that there’s likely a whole lot more to come from cannabis in the near future.
There’s exciting research being performed that utilizes cannabis to treat a variety of illnesses that couldn’t be dealt with as effectively in the past. The usage of cannabis in ALS patients is perhaps the prime example of this as cannabis is known to help ease the symptoms of this disease and there’s even research to suggest that it might slow down its progression by a significant amount. It goes without saying, though, that cannabis certainly isn’t the be-all-end-all cure for diseases of this particular sort since there’s much research that’s yet to be done in order to determine its efficacy in these cases but, so far, the signs have been good and there is absolutely huge potential for the growth of the cannabis industry.
5: Relatively Inexpensive Stock Prices
Perhaps one of the most major reasons why one should consider investing in cannabis stocks right now is the fact that they’re actually not that pricey of an investment. Given the insane levels of demand that cannabis has seen in recent times as well as the clear potential that it has for growth, the stock prices of a variety of big names in the market such as Love Hemp, Aphria, Canopy Growth, Tilray and Aurora Cannabis are still seemingly much lower than they potentially could be which is why it’s an incredible time to capitalize on this opportunity and invest in said, or similar, stocks before they end up seeing the substantial growth that’s almost certain to come.
Of course, it goes without saying that this could likely tip the other way as well as is the case with any stock in the market but, simply going off the projections and predictions made by experts in the field and by analyzing the trends of the cannabis market, it’s fair to say that the likelihood of cannabis stock prices skyrocketing in the near future is incredibly high which is why the current stock prices absolutely sound like a solid starting point for those who’d like to invest.
All things considered, cannabis stocks have shown exponential growth in popularity in recent times and all signs indicate that this popularity is going to keep going upwards with the passage of time as more and more people realize this stellar investment opportunity. With all the aforementioned reasons in mind, though, it’s certainly fair to say that it’s a great time to invest in cannabis stocks right now and doing so is something that should definitely be on your radar if you’re looking to invest in stocks.
