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As cannabis continues to climb into our world and becomes less stigmatized, the more ways there are to legally profit off the craze. Cannabis stocks and ETFs are on the rise and with places like Canada legalizing recreational cannabis, the easier they are to come by, and the more likely these stocks are to stick around.
According to Business Insider, millennials are most likely demographic that has started to buy up a lot of cannabis stock and related ETFs. The reason for this inference is the fact that the investments going into cannabis stocks tend to be less than what is seen in other products and are being purchased on newer free trading apps like Robinhood. It can also be assumed because according to The Washington Post, millennials are also the largest generation of cannabis users.
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Many of these stocks and ETFs are only available to be traded in Canada, but you can find some traded in the US like those that can be purchased via ADRs or American Depository Receipts. The most suggested cannabis trade item most would say is the ETF under the ticker MJ known as ETFMG Alternative Harvest ETF, and recently passed the $1 billion mark in assets.
Some are saying the boom in the cannabis industry, specifically in the stock market, has created a bubble. A bubble comparative to the dot com boom in the late 1990’s and early 2000’s and the railroad industry in the 1880’s, both of which had poor results with stocks sinking and companies going bankrupt.
With all the potential uses of cannabis however, the market seems more diverse and should have more specific and niche stocks coming soon that relate to cannabis in other ways, such as companies who solely focus on non-psychoactive cannabinoids like CBD and CBN. As with all stocks, nothing is certain, and the stocks could continue to grow in numbers and size just fine, or thy could crash. Normally, it is said that once stocks are in the news for how they’re doing, it is too late to invest. Do not get your hopes down though, you might not make big money investing in cannabis now, but you could make a little potentially.
