You’re Investing in What? Are Cannabis Stocks Worth The Investment Risk?
If you’ve been considering a new, somewhat volatile investment opportunity for 2019, cannabis stocks could be the answer for you. Here’s what you should know!
As marijuana becomes legal in more places around the world, it’s time to consider how you could add cannabis stocks to your portfolio.
You don’t have to be a fan of weed. But you can be a fan of the stock opportunity to grow your investments.
If you’re considering a new investment opportunity for 2019, cannabis stocks could be your answer. Here’s what you should know.
Growth in More Ways Than One
With legalization throughout the U.S. and in more countries, growers have the opportunity to expand their markets legally.
As an investor, this growth means growth for you, too.
Cannabis companies are going public with their stocks. Germany’s cannabis industry could reach $1.6 billion by 2022.
Canada’s recent legalization of recreational marijuana opens the opportunity for massive growth and new interest from investors.
Choosing the right cannabis stocks could significantly boost your portfolio.
Is it Worth the Risk?
As with anything new, proceed with caution.
The cannabis market comes with volatility and high-risk levels. Weed hasn’t yet proved itself as a worthy investment. Yet, it’s an exciting new industry with a lot to overcome.
Take the time to learn about the industry when considering adding cannabis stocks to your portfolio.
It’s more than weed. The cannabis industry includes edibles, oils (like CBD oil), and concentrates for vaping. In addition to recreational use, there are many medicinal uses for marijuana products.
There are also different parts of the supply chain and industry. Growers need resources to get their products to market.
Investing in the weed industry includes distribution, packaging, suppliers, and science. If directly funding growers makes you nervous, find other companies with stocks in the industry.
How Can You Know How to Get Involved?
Like other stock industries, there are good and bad marijuana stocks. Knowing where to invest can be difficult without help.
The cannabis industry doesn’t yet lend itself well to robo-advisor investing.
Consult with advisors like NICI to help determine how to best invest in weed stocks. They watch trends to help investors know how the marijuana market can be profitable.
Reliable information can be hard to find with a young industry coming out of a time of unfavorable perceptions. The marijuana industry has some PR work to do as it works toward becoming a reputable industry.
Take your time to find legitimate stocks trading on reputable markets. Look for stocks with potential for growth and enough support to back the growth.
Research company executives and partnerships. Like any corporation worth your investment dollars, look for solid business plans and strong leadership.
Cannabis Stocks Could Be The Next Big Thing
There’s a lot of potential with cannabis stocks and the industry as a whole. But it’s not without risks.
Do your research. Marijuana stock has potential, but it’s not yet a proven investment strategy.
If cannabis stocks feel too risky for you, there are other new ideas for your investment portfolio. Cryptocurrencies are promising. Read about what to stay away from when choosing cryptocurrencies.