Money Morning

Why Cannabis Stocks Are Going Up

It would have been ludicrous to think that one day you could actually invest in cannabis and here you are, considering it. Now, stocks are a little unpredictable, which is something most investors accept. Cannabis is a little different, but it still requires investors with a strong stomach.

 

Why are Cannabis Stocks Going Up?

 

Legalization

 

One of the biggest reasons many people are choosing to invest in this market is because more states in America are accepting its use. Legalization is becoming a major talking point among the two major political parties in this country. This movement with the law is helping people feel like full legalization is on its way.

 

Normalization

 

Just because lawmakers and a chunk of the American electorate seem to want legalization doesn’t mean every person is going to be okay with marijuana. For a long time, several folks were told that this is a gateway drug and that it causes all sorts of issues.

 

These individuals are having a hard time accepting that marijuana is going to become no different from a cigarette or a beer. Some of these individuals are the ones fighting to stop the legalization of marijuana, but as more people talk about cannabis, the more normal it becomes. Its normalization is definitely another point in its favor.

 

Skepticism

 

That wee bit of skepticism mentioned earlier is also helping the price of these stocks rise and give an opportunity to investors out there who are willing to take a risk.

 

The fact that it is not nationally legalized and old ideas about cannabis may be enough to ensure that a chunk of would-be investors stay away from investing. This gives people like you a little more freedom within this market. You should also know that this skepticism is part of what makes this type of investment risky, but it also incentivizes stock sellers to give you better interest rates, and that is definitely appealing for more daring investors.

 

How to Get Into the Cannabis Market?

 

You can see why cannabis stocks are rising, so you are wondering if you should get in the action now before everything blows up. Well, the following are a few cannabis stocks to invest in 2019 that you may want to consider:

 

The Retailers

 

One thing you can do to invest in marijuana indirectly is to invest in the retailers that are going to be selling these products. At the moment, some of the largest retailers willing to do this are Walgreens, CVS, Wal-Mart, and Amazon. Investing in these is one way to go if you want to get your feet wet.

 

The Distributor

 

Another way you can begin to invest in cannabis is to simply invest in the company that is going to be distributing most of the products derived from cannabis, such as CBD oil or CBD-infused gummies, just to name a few. One of the largest distribution companies that have been taking steps to being the number one distributor is Constellation Brands Inc.

 

Square

 

Square is a payment processing company somewhat similar to other peer-to-peer processing payment companies, like Venmo. To think about it, you wouldn’t think this company has anything to do with the cannabis industry, but that is not the case. The company just took a step towards allowing CBD merchants to use their services to receive and make payments through their app. This is definitely one company that is betting on cannabis, and best of all, its stocks are open to the public, so you can be a part of this.

 

These are just some stocks you can consider, but the reality is there are many more. It’s more about you and how involved you want to be in the entire process because there are companies growing the plant, or you can just focus on small businesses attempting to sell cannabis-based products.

 

It is important to figure out how you want to be involved because the benefits of getting involved in this young market are truly exciting. You could end up making a huge return on your investments, but make sure you diversify all investments to spread the risks you are taking.

 

Keep in mind that this market is still getting hit left to right by conservative political groups. You will see numbers fluctuating more than other types of stocks, so be patient, and continue to watch the market.