For those who may be interested in investing in the cannabis sector…
Let’s do away with the age-old adage and nomenclature – it’s 2019 and the trends are shifting. According to Grandview Research, the global legal cannabis market is set to explode to an unbelievable USD $146.4 billion by the end of 2025.
The industry has been in the spotlight for some time now, and you may be wondering, how can I get my share of this generational investment opportunity, and is it too late or is there still potential to make a return? The momentum of 2018 has investors enthused about the potential for the future of the cannabis industry, which is largely due to recent legislation that has been proposed, and major investments from some of the world’s largest companies such as Constellation Brands (the maker of Corona), Altria (better known as Phillip-Morris – or big tobacco), and Anheuser-Busch (the maker of Budweiser). Cannabis now expands beyond 30 countries worldwide and is set to grow 38% with sales upward of $16.9 billion dollars.
So what does all of this mean for you? Well, it means that there are still opportunities on the horizon, but due diligence is a must. While there are few cannabis companies with a market cap in the billions, there are many more that are just beginning their trek in this tightly regulated industry. We urged everyone who has interest in investing to err on the side of caution because although a company is publicly traded, it does not make it a safe investment. You must look at the fundamentals and make a sound judgment, as the SEC has issued an investor alert, which lists several signs of fraud and actions that should raise a red flag.
Nevertheless, the potential for huge gains is likely given that there are many markets that still have yet to be exploited. In our opinion, that tipping point for the industry is when the U.S. legalizes at the federal level.