Should You Invest in Marijuana Stocks?
Buz Investors Marijuana Stocks Many investors are hoping to strike it rich by investing in marijuana stocks, but they should think long and hard about that decision. It can be confusing not knowing how to invest in marijuana stocks since there are so many ways to invest in marijuana stocks. Cannabis legalization is an opportunity, to be sure, but it is also a risk. The real question is: Should you invest in marijuana stocks?
t all depends on your ability to handle risk. Even the best marijuana stocks in 2017 have a certain amount of volatility, so it’ll take an iron stomach to profit from cannabis.
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If you can stay cool while red is flashing across your trading screen, then keep reading. The trend of marijuana legalization is certainly minting new millionaires across North America. However, it’s important to remember that governments move slower than businesses.
How to Invest in Marijuana Stocks?
Here’s the first thing you should know: There’s more than one way to profit from marijuana stocks. Not all of them are in the business of selling cannabis to customers. Some are suppliers, others are distributors, and a few are even further afield.
For instance, marijuana producers stocks are completely different from medical marijuana stocks.
Just because the latter category has “marijuana” in the title doesn’t mean they grow and sell weed. They are much more like biotech companies, to be honest, because they use the chemical properties of marijuana to create prescription drugs.
Marijuana currently slips between the cracks of U.S. law. Some states have legalized its use, but federal law still prohibits the ownership and distribution of cannabis.
Under normal circumstances, the federal government’s decision should overrule the states, but President Obama let them pass. He allowed individual states to ignore the federal policy if they chose to regulate marijuana. That is how the $6.8-billion marijuana industry was born.
“Marijuana is against federal law, and that applies in states where they may have repealed their own anti-marijuana laws. So yes, we will enforce law in an appropriate way nationwide,” Sessions said. “It’s not possible for the federal government, of course, to take over everything the local police used to do in a state that’s legalized it. And I’m not in favor of legalization of marijuana. I think it’s a more dangerous drug than a lot of people realize.”
(Source: “best marijuana stocks in 2017,” CNBC, March 14, 2017.)
Medical Marijuana Stocks
For those with a smaller appetite for risk, there are medical marijuana stocks like Cara Therapeutics Inc (NASDAQ:CARA). This company is working to address one of the most pressing problems in the country: the opioid epidemic.
America is hooked on painkillers. It’s not anyone’s fault exactly, but the fact remains that many prescription opioids are addictive. People start taking them as pain medication and it gives them a feeling of euphoria. So they go back for more, again and again.
While the road to marijuana legalization looks inevitable, there are political landmines that could cost you a bit of money along the way. Be wary of them, and of your own tolerance for risk.
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