Did you know that medical marijuana is legal in 33 US states?
As of January 2020, more and more politicians seem to be in favor of the legalization of marijuana and cannabis-related products. A lot will uncover after the results of the 2020 presidential elections. As far as investing in marijuana is concerned, the market is on the rise. Since the legalization of marijuana in Maryland, the first-year sales netter $95.4 million. Similar trends were observed in other states like New York. This post is intended to give you some perspective on whether you should invest in the marihuana industry or not.
What Is the Future of the Marihuana and Cannabis Industry?
Indeed, the future of marijuana and cannabis industry is bright. The marijuana farms, storage units, retail outlets, and other departments involved in the logistical process are all profiting massively. According to a report by a top recruitment website, Glassdoor, cannabis jobs are increasing rapidly. They also shared a stat that says the job requirement in December 2018 was 76 percent higher than in the same month a year before. Have a look at the chart below and you will have a good idea of the potential of this industry. It is always advised to study the industry before investing your hard-earned money in it.
Furthermore, with the advent of specialized technological devices, the production of marijuana is also estimated to grow 20-fold in the upcoming years. There are sensors available that allow a weed farmer to grow this plant indoors. Sensors measure data like light intensity in the environment, the temperature of the surroundings, and also nutrient levels in the soil. The reading/output can easily be displayed on the smartphone via an app. This way, weed farmers always know that their efforts will yield a favorable result–and the hard work won’t go in vain.
Is 2020 a Good Year to Invest in Marijuana or Cannabis?
The cannabis industry began the year 2019 with a bang. Yet, stock prices started to pummel due to the bear market in the last few months. Factors like low sales and new government laws contributed to low stock prices. According to TradingView, on 8 January 2020, the market closed at 15.64 USD. Which the lowest in 2020. However, since 20th January 2020, the prices are going up again. On 20th January 2020, the market closed at 16.53 USD. Since then, the market has fluctuated but it is estimated to rise again. Whether to invest in marijuana or not depends on the market situation in the next few months.
To get started with a stock market investment, you need to open a brokerage account online. Most finance firms charge a commission on your returns but you will definitely find commission-free accounts online. E-Trade offers such an account. Or, to make life easier, there are mobile apps available for novice investors who don’t have much knowledge of the stock market. These apps offer tools like reports, charts, and other data for free. Some also manage your portfolio for a small fee.