The long war on cannabis is finally coming to an end, And Wall Street has kept a keen eye on it. With legalization sweeping over America, lots of investors believe that they are on the brim of jumping right into a new revolutionary industry that is changing society as well as all the other industries that exist within it.
Over the last 18 months, lots of watershed moments have been featured for the cannabis industry, the most important moment coming on election day when the US fully legalized recreational marijuana.
All of these great shifts in public policy and legalization have generated lots of revenue for marijuana companies, and the stocks have been constantly climbing.
Before investing, however, it is wise to understand and fully get educated about the stocks, their volatilities, and how the company’s actions play a role in determining their future revenues.
During the November 8 election, seven states have legalized marijuana in some form. These include California, Maine, Massachusetts, and Nevada, who voted in favor of recreational weed, while Arkansas, Florida, North Dakota supported legalizing medical marijuana.
However, from an investor’s perspective, looking at the states that legalized recreational marijuana will give us a more accurate depiction of its overall success in the market. If it can succeed in a state like California (which is regarded as a proxy), then it can succeed anywhere.
Colorado also has given many investors a great indication of how legalization can generate growth. Recreational marijuana has generated over $1.6 billion in 2016, which translates to $200 million in overall tax revenue for the state.
In addition to the 8 states that have already fully reformed their drug policies, there are 7 other ones that are debating jumping into the bandwagon. These include Delaware, Rhode Island, New Jersey, Vermont, Missouri, New Mexico, Kentucky, and Texas.
This projected future growth throughout the nation could potentially positively impact the marijuana market and the way that investors choose their stocks. Soon there will be more marijuana stocks to invest in, with lots of potential in these new legalized playing fields.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
