The Stock market is climbing… should I invest in weed stocks?
Hell Yes! Was that even a question. Oops, I’m sorry let me not be rude. Yes gorgeous, you should most definitely invest in cannabis and let me tell you why.
As 2020 ended, the stock market has been trying to have a great first quarter. Hundreds of companies such Tesla, GE, Uber, Apple, Google, and Bitcoin, just to name a few, have all been pushing hard to start this quarter better than where they ended in 2020. Many companies struggled if not closed, temporarily and or permanently, due to the economic strains of the pandemic. Companies that continued to power through the ups and downs of the economic roller coaster are doing everything possible to keep the lights on and the profits coming in. Their tenacity is what continues to push the stock market forward while most others thought they should jump out of it. Investors that stayed in have seen their gains take new heights. Even people that were once afraid of trading were empowered to buy stocks that were leveled to more reasonable prices in March and watch their little coins grow exponentially through the holidays.
You may say to yourself “where do I start”. Some of the best investors will always tell you when it comes to investing, start with stocks that you believe in or what you use most often. Applying this same theorem, if weed is the very thing you buy to unlock your creativity, ease your pain, or drift you to your peaceful place, this is great industry of stocks to get your feet wet in understanding the market. Not mention this is also an industry where the price per share to get started is still fairly reasonable against behemoths like Lindt or Berkshire Hathaway whose shares are well into the hundreds of thousands.
As legalization continues to pave its way through America, the cannabis industry has become more mainstream on both the medical and recreational front. This has led to the industry’s potential to become extremely lucrative. It is also allowing the companies who have helped pioneer this movement to be publicly traded. This allows you as a consumer of cannabis goods to be able money off their success in the market. The clamor for full legalization has become stronger than ever. In the DMV, the conversation has become increasingly evident as both Virginia and Maryland are tabled to discuss better legislation in the coming months in regards to cannabis and even other psychedelics. Better legislation, even in the smallest bit, is stimulant for the economy. The cannabis industry offers plenty of latent benefits for the economy that are very much needed and welcomed.
Of course, the stock market is ever changing so it is never recommended to drop your whole life’s savings into any portfolio of stocks; but this is an industry with momentum as an ace in its pocket. Growth is expected to be fast and furious as legalization continues to sweep through the US, but don’t let that scare you. There are so many smart apps such as Stash, Robinhood, and Webull that allow more consumers to have access to trade in the stock market with as little as $5. You don’t need a financial manager, you don’t even have to hold a college degree to buy stocks. All you need is a smartphone and a bank account and you can start trading alongside of some of the biggest Wall Street tycoons imaginable.
Here are some publicly traded cannabis stocks worth mentioning:
Cronos Group: + 45.29% Past year, ticker CRON
Cronos Group Inc. engages in the production and distribution of cannabis. Its brands include PEACE NATURALS, COVE, Spinach, Lord Jones, and PEACE+. Founded in 2012, Headquartered in Toronto, Ontario
Canopy Growth Corporation: +54.245 Past year, ticker CGC
Canopy Growth Corp. engages in the production and sale of medical cannabis. The company offers products including oils and concentrates, soft gel capsules and hemp. It focuses on the treatment of chronic pain, seizures, muscle spasm, nausea, and loss of appetite. Founded 2009, Headquartered in Smith Falls, Ontario
AdvisorShares Pure Cannabis ETF: +80.31% Past Year, ticker YOLO
The AdvisorShares Pure Cannabis ETF is an actively managed ETF that seeks long-term capital appreciation by investing in mid- and small- cap companies that derive at least 50% of their net revenue from the marijuana and hemp business.
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No matter what stocks you choose, just know that the Cannabis industry is here to stay and profits will continue to climb year over year as more states login into the conversation of legalization. Be apart of what you believe in. As you are smoking some green, why not get a little green at the same damn time. Happy trading!
Written by: Lady Kay
