Just like in my last post I am going to start this off by stating in no way is this post meant to be taken as investment advice. It is your choice if you would like to invest in cannabis stocks, this post is solely meant to answer a few simple questions and give you some food for thought.
Great now that that’s out of the way, lets get to it.
What are Cannabis Stocks? These are companies who are involved (in some way or form), in the production and/or distribution of Cannabis or Cannabis related products.
Why have they increased in value? Since the 2015 election Cannabis stocks have risen in value as the prospect of cannabis becoming legalized and available for purchase for recreational use is quickly becoming a reality. It is already a Billion Dollar industry, and many companies are starting to become interested in this space.
Have you ever heard the aphorism ‘a rising tide lifts all boats?’ Well this is very much the case with the Cannabis industry, right now the speculation and enthusiasm for the industry is driving the increase in prices across the board. Don’t get me wrong, a lot of what is happening is positive news and I do believe this industry is here to stay, but it doesn’t mean there won’t be bumps along the way. Regulation will be an ongoing hurdle and sooner or later the sales data will have to start justifying the valuations of these companies. Our eyes are on July 1st, lets see what happens.