Marijuana stocks have very quickly become one of the most popular aspects of the stock market. With so much value and so many willing to participate, it looks as though cannabis is the way of the future. The increasing amount of people buying cannabis stocks has helped to bring a large amount of attention into the market. With all of the hype, many are asking, is it worth it to invest in pot stocks?
What is it About Weed?
Marijuana, weed, hash, pot, you name it; cannabis is here to stay. For those who don’t know about the miracle substance, we’ll give you a brief overview. Marijuana has been around as a substance for thousands of years. With the earliest records of its usage as a substance dating back many centuries, cannabis doesn’t look like it’s going anywhere.
The two main components of the substance, THC and CBD are still highly misunderstood. The main reason for this is that in most places around the world, it is still very illegal. THC or tetrahydrocannabinol is the main psychoactive component of the plant. This means that THC is responsible for getting you high. The substance also has a variety of medicinal benefits including pain management and seizure reduction, but all of this is just now beginning to be studied.
CBD or cannabidiol is the other main component of the cannabis plant. Cannabidiol is has become a hot topic amongst health and wellness folks for some time now. CBD differs from THC in that it does not get the user high. This means that it could be a viable treatment for those who cannot become intoxicated such as children or the elderly.
To Invest or Not to Invest, That is the Question
The simple answer is that it all comes down to personal preference. Marijuana stocks are notoriously volatile, which is due to how new the industry is. Some studies have shown that the market is subject to jump to double digit-billions around the world in only a few years. With Canadian marijuana sales already subject to hit around $5.4 billion by the year 2022, there is a lot of potential waiting to be tapped.
The largest potential market overall is that of the U.S. In the U.S., many states have already chosen to legalize the substance. With that in mind, there is still a handful of states that have not done so. Those that have, have seen multi-billion dollar revenues in only a short period of time. This just adds to the amount of opportunity that is abound in the industry. The other markets around the world such as Germany and other nations, have yet to fully tap into their potential, but they look as though they could soon.
All in all, marijuana stocks are extremely exciting. There is a lot of hype in the market at the current time and for good reason. With so much on the horizon, cannabis stocks look as though they will remain the wave of the present, and the future.