Are Cannabis Stocks Worth Investing In?
When it comes to financial stability, Millennials and Gen Z humans are in trouble.
According to a recent poll by Associated Press, current household expenses are on the rise, and a whopping 85 percent of people have seen higher than usual prices for everyday necessities from groceries to gas in recent months. And due to the global pandemic causing huge inflation rates in America, more and more young people have resorted to living with family members to help with financial stability.
Compared to the Baby Boomers, the American dream of buying a home and having the same lifestyle as before has vanished. Instead, many individuals are looking into financial longevity, specifically investing. And as history evolves, so does the stock market. With the legalization of cannabis, marijuana has appeared to be booming in the stock market. Making cannabis one of the fasting growing investments. But is putting money in cannabis stock worth the investment, or is this just a current fad that will fade? Are cannabis stocks worth investing in right now?
When to invest in cannabis stocks
There is no better time to invest in cannabis stocks than now. “Investing in cannabis stocks is a smart move,” says Rick Batenburg, Chief Investment Officer for Cliintel Capital Management Group. “It’s an emerging market that’s expected to show significant growth over the next few years and decades beyond.” Cannabis made its debut in the stock market in 2018 when legalization became official in Canada. It was the first time in history where Canadian businesses created an enormous impact. And, that the trend made its way towards the US. As cannabis businesses grew, companies made their shares available for sale, which immediately caught the eye of investors.
Legalization has given people new opportunities to expand their financial portfolio and invest in something they believe in holistic wellness. And, it has also allowed businesses to have shareholders expand in their companies. So, it’s no wonder that Millennials and Gen Z are leaping at these new investment opportunities. But with every investment comes risk.
More secure investing with EFT
Cannabis is still not FDA-approved, meaning cannabis businesses face the risk of prosecution if operating in a state where cannabis remains illegal. Therefore, all investors, newbies, and experts need to do their due diligence before buying shares of cannabis stock. In other words: research. Yet researching and understanding how to enter into the stock market can scare new investors, but Batenburg suggests to start simple:
“The most accessible way of investing is through a cannabis exchange-traded fund (EFT). An EFT allows investors to purchase a group of securities instead of selecting individual stocks.”
Even with an EFT, new investors should also evaluate the overall market to see where current cannabis companies fit in the industry. Some companies that are currently thriving are Curaleaf, Green Thumb Industries, and Trulieve Cannabis, to name a few. Regardless of whether you invest in a stock or start with an EFT, it’s safe to say that cannabis is officially a part of the market, and it doesn’t seem to be going away anytime soon. “This is not a fad as the market was created to grow emerging businesses. The cannabis industry demands substantial capital investments only achievable through the public markets — for the people, by the people,” states Batenburg.
The cannabis industry in the stock market gives new investors a sense of what it means to build a financial portfolio. It also allows them to invest in what they believe: holistic health and wellness. And what better way than to have your money work for you? Especially when it’s a power plant.