As the COVID crisis continues on, it is fascinating to see the effect it has had on particular markets across a variety of sectors. One sector that is particularly interesting is that of the cannabis industry. With the COVID crisis our new reality it is important to investigate further into how this growing industry could be forever altered.
The Impact Of The Cannabis Market
COVID has forced everyone to look at businesses in a new light. In a matter of weeks, the way businesses operate have been turned almost upside down. This has quickly led citizens and legislators alike to view the cannabis market in a new light as well.
The industry appears to still be thriving despite high unemployment numbers and some of the strictest lock down measures in recent history. One thing is for certain, investors have quickly realized just how resilient this industry truly is.
How Legalization Of Marijuana May Be Impacted By COVID?
As the country sees cannabis companies being labeled as “essential” businesses, the odds of federal marijuana legalization have gone up. COVID has helped to show that this has evolved into a very serious industry that employs thousands of people. As COVID has proven that job losses are not over, legislators must look to new areas for sustained job growth.
With the proven success of the Cannabis industry as a job creator, legislators may be much more inclined to legalize cannabis. According to experts at Money Morning, “In 2020, nine more states will be voting to legalize cannabis in some form. If all states pass their initiatives, 40 states will have some form of cannabis legalization. Already, 33 states have legalized marijuana in some form. That includes 11 that have legalized recreational use (plus Washington, D.C.).”
Is Cannabis A Good Investment?
Any market which is primed for excessive growth can be viewed as a good investment. With that being said, it is important to realize that all sectors of business have well run and poorly run businesses. The cannabis industry is no exception to this rule.
Ensure that you thoroughly review the business plan, client prospects, and distribution strategy prior to investing your hard earned dollars into a cannabis company. Those willing to put in the hard work based on their careful planning will be those which can give you the best return on your investment.
How Can You Start Investing In Cannabis?
When people think about investing in cannabis, they often only think about the growing and retail sides of the business. While these are both highly important parts of the supply chain, it is just the tip of the investment iceberg. A great way to begin investing in cannabis is to research pharmaceutical companies which are using cannabis to develop new medications.
Because it is legal in many states to use cannabis for medical use, the research in this field can be done much more freely. Additionally, it is also possible to invest in index funds which track a particular cannabis market. This includes a specific part of the industry or a foreign country which has already legalized marijuana nationally.
No one expected 2020 to be the year of the COVID crisis. By better planning for how this will impact the cannabis industry, you can be better suited to make investments which will reap benefits for years to come.
