What was once considered to be illegal, immoral and something to avoid at all costs has finally reached a level of acceptance that it is being bought and sold on the stock market. The reason for this shift in thinking is the acceptance by many states to start legalizing cannabis-based products for medical and commercial use. As such, many companies are popping up all over with their brands making it onto the stock market. As such, you can get your hands on some cannabis and make yourself money legally.
Industries profiting from cannabis
To put a fine point on this let’s take you into the real world. When looking at cannabis there are many industries that are starting to seriously look at the product as a viable resource. These industries are health and wellness with people buy marijuana online for pain management. There are also food and beverage industries where cannabis is being infused with substances such as liquor, gummies, pet products and more.
From there we are looking at the cosmetic industry where cannabis is being used in makeup, shampoo, soaps and deodorant. Sports are also using cannabis in different ways. Some schools are even starting to see the beneficial effects on children with ADHD and other mental and behavioural issues.
Now, with all of this being said, the federal government still hasn’t legalized any type of cannabis products. In fact, everything that is going on is still based on the state level which means is if the federal government decides they can come in and shut it all down. This is why considering cannabis-based businesses as an investment opportunity can be considered risky.
With this being said, if you are interested in the stock market and you want to try a few dollars at stocks here are a few that you may want to consider.
- Aurora Cannabis Inc (ACB)
- Canopy Growth Corporation (CGC)
- Aphria Inc (APHA)
These three companies are the first to hit the stock exchange. As such their barrier to entry is going to be low and their potential for future growth has the best opportunity. As an investor however, you want to keep a few things in mind.
Never invest more than you can afford to lose.
With anything related to the stock market you never want to jump in with both feet and put all of your money in one basket. For many people investing in stock can be very scary and when they see an opportunity like this they jump in without thinking. Make sure to consult a stock broker or a brokerage firm to learn more about pot stocks before you invest in them.
Plan on short term gains
When investing in these stocks have an exit strategy. You want to buy low and sell high like normal, however, you may want to get in and out quickly. One way you can do this is to purchase a set level of stock and when you double your money cash out half of your portfolio and or invest in a different company. That way, if the stock drops or the feds decide to do something you won’t lose your shirt and you will be working on pure profit.