The marijuana industry is on fire, especially after several American states decided to approve both recreational and medicinal use in early November last year. Experts believe that this business will tend to grow almost exponentially from now on.
On November 9, several states, including Alaska, California and Washington, approved the use of cannabis. They do so even though at the state level their use is still prohibited, but individual statesÂ have the possibility to approve this substance and they have done so in droves.
At present, there are areas where its use is only allowed for medicinal purposes, and only five in which everything surrounding cannabis is still prohibited. However, attitudes have certainly changed in recent years withÂ the latest polls a year ago suggesting that about 60% of Americans agreed with legalization.
Some studies point out that the marijuana industry has one of theÂ highest growth rates in the United States and sales are even expected to reach $ 22 billion by 2020.
And just as you can invest in gun manufacturingÂ companies, or sell alcohol, or gambling, you can invest in companies that invest in cannabis and/or related companies as wel (suppliers, distributors etc…)
Moreover, last winter the NYSE became the first market to allow a company related to the sector to freely quote. Until recently, many marijuana related stocks were traded in the much smaller and opaque OTC markets. Other countries like Canada or Germany are beginning to take part as well.
So whats a safe way to invest? Try Innovative Industrial Properties, a REIT that is dedicated to renting land for growers. Some experts said a few months ago that this company had become a good option for institutional investors toÂ enter this business with the tranquility andÂ transparency required by the NYSE.
Actually, there are already companies that are not exactly dedicated to this, some biotech companies like GW Pharmaceuticals or Insys Therapeutics and are listed on the Nasdaq. You should check them out.
The Canadian company that you can invest in isÂ listed as Canopy Growth, which, naturally, has the marijuana plant as its symbol.
It’s not surprising that investors are curious about this market. According to the index prepared by the financial advisor dedicated to this market Viridian Capital & Research, the sector that includes both marijuana companies and related companies, rose more than 21% since January.
Conclusion: The kids may be on to something. Dont miss out