As I write this blog, Cannabis has been legal in Canada for just over 2 years. In these 2 short years, the plant (in its various forms) has gone from illegal to easily accessible. At first glance, it would seem that Cannabis as an investment has fully blossomed. Legalization is here and demand has been calculated... or so it seems. What we have failed to see through the haze, is that Canada's experience is not common worldwide. In the US for example, the Cannabis trade has just begun to sprout.
Canada's early legalization has given Canadian investors access to companies that grow and sell Cannabis to Canadians. This experience is unique to Canadians. This structural shift has allowed investors to benefit from the pent up demand from domestic consumers. Since 2014, when the first Cannabis company went public, Canadian's have led the way in the global Cannabis investment space. All this being said, there will be a day when countries other than Canada open their doors to the Cannabis sector. In the 2020 US elections, we saw many states begin their own journey to legalization through referendum votes. As of today, 1 in 3 Americans lives in a state where Marijuana has been legalized. The potential customer base for Cannabis companies is constantly and consistently growing but there is plenty more room to go.
At Choice Wealth Management, we partner with active fund managers in the Cannabis space so that our clients benefit from manager experience in the ever-changing industry. Active management in a growing sector can help reduce downside risk and will allow you remain positioned for growth. If you are considering investing in Cannabis, you may still be able to capitalize on a trend that has plenty more room to grow.
See Vox's video below for additional info on the Cannabis climate in the US:
Comments