Guide to Investing in Medical Marijuana Stocks
The legalization of consumption of marijuana in some US states has given rise to a lucrative industry. Recreational marijuana laws have been approved in 4 US states, while 24 more states have passed medical marijuana laws. In 2015, the market of legal marijuana grew by 17 percent to $5.4 billion. And in 2016, it was expected to grow by a further 25 percent to $6.7 billion, according to research by ArcView.
Thus, it's not surprising that there are numerous new start-ups in the marijuana sector, and some have even been listed in the stock exchange. Therefore, you can now buy medical marijuana stocks and invest legally in marijuana-related companies.
Is it wise to buy medical marijuana stocks?
Although buying marijuana stocks might seem like a fancy idea and also lucrative considering the current surge in the medical marijuana industry, it's important to note that medical marijuana stocks are often very risky investments.
Most of the stocks listed are from small companies. They're exchanged over-the-counter, and work within a sector that has lots of legal and regulatory risks. The Federal Law still considers cannabis a controlled class 1 substance.
Advice for investing in marijuana stocks
Naturally, many people would be quite hesitant to buy medical marijuana stocks due to their very risky nature and the legal environment around the substance in the US. That said, as with any kind of investment--the greater the risk, the greater the returns.
Thus, if you want to buy marijuana stocks, you can buy one of the many "marijuana motifs" via an online wealth management site. This way, you will have a varied portfolio of medical marijuana stocks when you go here.
Or, you can choose the medical marijuana stocks you believe will do better. If you choose to buy specific marijuana stocks, be sure to thoroughly research on the marijuana companies you decide to invest in. Research online to find lists of marijuana stocks. However, remember that most of the stocks are small and illiquid and have a great level of risk.
Thinking about investing in medical marijuana stocks? There is definitely plenty of excitement among investors. A total of 28 states in America now allow the consumption of medical marijuana. A further 8 states as well as the District of Columbia permit the use of the commodity as a recreational drug. However, before you dive into investing in marijuana stocks, do a bit of research about the industry to get more information.
For other related details, you could also visit https://www.reference.com/health/locate-nearest-medical-dispensary-447d4ea88bea939f.