New regulation and open-minded consumers are two big factors promoting optimistic expectations for the medical marijuana industry. So far, 33 US states have legalized the use of medical marijuana and this might be just the beginning.
Cannabis has been getting attention particularly because of the non psychoactive extract called cannabidiol (CBD), which is sold as an ingredient in oils, oral sprays, creams, pills, or edibles like gummies and lollipops.
Many people believe CBD can have therapeutical effects, providing relief from pain, anxiety, and depression. In fact, a Pew Research survey showed that 62% of Americans believe the use of marijuana should be legalized.
Cannabis is a trendy new sector, but that doesn’t make it a great investment. Like most emerging industries, the cannabis business is subject to a lot of regulatory scrutiny. Moreover, successful product adoption is also a factor to consider and it may take a while for cannabis to become a household product, if ever.
These are only a few reasons why investors who want to put their money in cannabis should think twice and double down on their research. It may be worth keeping exposure to the hemp industry to a small percentage of an overall portfolio in order to dilute risk.
If you decide you actually want to invest in cannabis stocks or ETFs, you can do so with Passfolio. The app lets you start investing with as little as $1 - all with no commission fees¹².
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