Cannabis stocks are growing in popularity, but some people are still a little scared of these types of stocks. The following guide is meant to help you understand this world and help you see if you’re ready to get started.
How Can You Invest in Cannabis
One of the biggest hurdles that most people have regarding cannabis stocks is the legality around it.
There are countries like Canada that have completely legalized cannabis, but the United States believes it’s illegal. The saving grace in the US is that states can enact their own laws, and there are some that have, allowing some form of marijuana in their states.
Those who are thinking of investing in marijuana stocks should definitely pay attention to politics. There are politicians in the United States who are attempting to legalize marijuana on a federal level, and if this happens, stocks will likely skyrocket.
The legalization of marijuana is quite popular in the United States. This is the reason many people are investing in cannabis. They are betting that the will of the people will overcome at some point. Sure, there are a few people who are fighting legalization, so this surge might not come for some time, but patience is the key when it comes to the stock market.
What are the Best Stocks to Invest In?
Okay, now that you know you can consider investing, you can learn about the cannabis stocks to invest in 2020. The following are just a few that look pretty promising, but there are many more you can explore:
The first stock that should be highlighted is the Constellation Brands stock. This company has been in the game for some time. They are responsible for Corona and Modelo, which are successful premium beers. The company is even planning on launching a hard seltzer line along with many other spirits.
Sure, the company is new to the cannabis game, but the infrastructure they’ve already built and their experience shows promise. Part of the reason this company is showing promise is because it has partnered with Canopy Growth, which is one of the biggest growers in Canada. There is no telling how much bigger the company can get as Canada continues to invest in cannabis.
Innovative Industrial Properties
Innovative Industrial Properties is another company worth paying attention to if you are interested in getting involved in the growth of the cannabis industry. This is a real estate company that is solely focused on cannabis. The company owns property that it leases to cannabis-focused businesses.
At the moment, it owns 46 properties in several states, and it is poised to grow that number. This company is very much invested in growth and helping blossoming companies find a way to distribute cannabis products.
This company’s opportunities for growth rest in the hands of the politicians. There are a number of states that are about to vote on legalizing marijuana in the US. This vote is happening in 2020, and if things go well, then stockholders of this company’s stock might be in for a big surprise.
Valens is a company that focuses on providing cannabis extraction services to those who need it. This service is only going to continue as Canada’s cannabis demand continues to grow. People who are paying attention to the stock market are noticing how much this company grows with each passing year. A person who wants to get in before things start taking off should pay attention to Valens.
The company has already won contracts with some of the biggest cannabis producers in the region, like Canopy Growth, HEXO, and Tilray, just to name a few. These contracts are meant to last for a few years, which is one reason many people are looking at this company’s stocks.
The company actually made white-labeling deals, which means they are going to be able to extract things like CBD and THC from the cannabis they’ve been promised by the growers that signed with them. The company makes products such as edibles or vape oils and sells those products to businesses who can brand them and market them to customers.
This market is going to expand. Latin American countries and the US are all filled with folks attempting to make marijuana mainstream, and that is giving stockholders a thrill.