Every once in a while, an investment opportunity comes along that is just too good to ignore. These don’t happen often, and you need to be able to react when they do pop up. If you’re looking into what that big opportunity will be in the coming months, then look no further than cannabis investments. Thanks to the legalization of cannabis in a handful of states, investors must look at it in a serious and rather exciting manner.
The Future Could be Brighter
Right now cannabis can be used for recreational purposes in five states. These five states are Nevada, Massachusetts, Maine, California, and Arizona. While that doesn’t seem like much, this election may soon change those numbers. Currently, there are four states that are looking to have it legalized for medical purposes, which are North Dakota, Montana, Florida, and Arkansas. Should the legislation be passed, you suddenly have a fairly large population of the country who is able to purchase cannabis legally.
As bright as that sounds, it gets even more interesting. There are 25 other states that allow for the distribution and possession of marijuana for medical purposes. Any investor looking at this industry should be sitting up and taking notice at this point.
There are Still Risks
So as good as an investment opportunity it may sound like, it’s important to state that there are still some risks involved. There are those states that are strong-holds that are currently not showing an interest in moving towards legalizing marijuana whether for medical or recreational use. Those watching the industry suggest that there are 14 states that may never decide to legalize it. This is despite the growing support that it is receiving from the public. In 2015 a Gallup poll showed that 58% of the American population supported the legalization of marijuana across the full country.
Another report, put out by Cowen & Co. an investment firm, suggests that by 2026 the industry could reach $50 billion in sales. Obviously, this is an impressive sales amount and not one that shows much risk.
Making Your Choice
With investments there never seems to be that clear-cut answer as there are never guarantees. So much hinges on the recent election results and what the new president will do when they come into office. It also depends on what the public pushes for and the market demands. It may be that you want to start by getting your toes wet instead of jumping right in. A wait and see approach can pay off as the new president takes power and starts to make their position on marijuana more clear.
The Numbers Don’t Lie
When it comes down to it, numbers don’t lie. As it stands the legalized marijuana industry is growing and blossoming and investors just can’t ignore it. For those who are getting in on the ground floor, the payoff can be that much bigger and exciting should trends continue the way they have been going.