As more states legalize recreational and medical marijuana, companies that offer ancillary products to the marijuana industry, as well as those that are strictly cannabis-based, are trading on the stock market. According to Business Insider, as of January 2019, 10 U.S. states offer legal recreational marijuana, and 33 have legalized medical marijuana. On the federal level, marijuana is not fully legal, which can present obstacles for investors.
However, by doing diligent research, hiring an investment consultant familiar with regulatory laws concerning the marijuana industry, and investing in the best marijuana stocks available, you can reap financial rewards.
Invest in Companies That Are Diversified
If you are fairly new to stock trading, especially in marijuana stocks, you might feel more comfortable investing in companies that provide services and products not strictly related to the cannabis industry. For example, Scotts Miracle-Gro Company has been around for decades, making fertilizers for vegetable gardens and backyard flower beds. Recently, Miracle-Gro started making soil specifically for the unique needs of marijuana plants. Although the market shares might not produce high yields, investing in an existing company that is diversified in its products might be less risky than investing in a singular cannabis-based company.
Another reason to invest shares in mainstream companies that make several products or offer diverse services is they can trade on the major U.S. exchanges, such as NASDAQ and the New York Stock Exchange. Because marijuana is still considered a Schedule I drug on the federal level, cannabis-specific companies must trade on the Canadian stock exchange where marijuana is legal nationwide.
Use Tools to Help You Find Market Trends
Because the legal marijuana business is fairly new to the stock market, knowing where to find information about which stocks are viable, which are scams, and market trends to watch for can be overwhelming. Using research and information tools can help you get on the fast track to being a savvy marijuana stock investor. Take advantage of these resources to find the best marijuana stocks.
Marijuana Business Daily
Marijuana Business Daily is a valuable resource for everyone involved in the marijuana industry. It provides detailed and in-depth information about all aspects of the cannabis industry. Topics are broken down into specifics, and the researchers track trends that move the marijuana market.
The BCMI Cannabis Report
The author of this comprehensive newsletter is an ex-securities compliance executive who deeply understands stock market trading. The information in The BCMI Cannabis Report, which is read by investors, brokers, traders, and even Fortune 500 executives, analyzes and conveys the regulatory aspects of marijuana investing.
New Cannabis Ventures
This newsletter bridges the gap between marijuana entrepreneurs and investors so both sides can understand the dynamics of the marijuana industry. Most of the information contained in New Cannabis Ventures relates to the rapidly growing U.S. and Canadian markets.
As more states legalize marijuana and more companies begin trading on the open stock exchange, profits from investing in marijuana stocks and cannabis-based companies will only grow. Now is a great time to begin investing in marijuana stocks to build a profitable portfolio.