A recent article, “Cannabiz: How to Invest in This Growing Industry,” published in The Ticker Tape, highlighted that recent growth and legalization chances of the cannabis industry potentially attract new investors. The author of the article, Matt Whittaker, analyzed the growth of marijuana stocks in 2020 and associated benefits and risks for investors. Whittaker highlighted the expert opinion of Dennis O’Neill, president of BioMedican, about expectations of investors attached to the federal legalization of cannabis.
Cannabis Market in 2020:
2020 was a very impactful year for the cannabis industry. Industry experts noticed a marked 71% increase in the sale of cannabis products. According to a cannabis information company, the cannabis industry sold products worth $18.3 billion in 2020. November elections also added to cannabis stock growth as more states legalized recreational marijuana.
2021 for pot industry:
2021 expects a “Cole memo” and Secure and Fair Enforcement Banking Act. Cole’s memo is Obama-style deregulation in which federal attorneys and law enforcement focus on national-level marijuana priorities and leave lower-level preferences up to the states. Dennis O’Neill predicted, “Most industry leaders are expecting that they will federally legalize cannabis sometime within the next four years.” According to him, the federal govt can either legalize marijuana or lose the chance to tax and regulate it.
Benefits and risks for investors:
It seems full legalization of cannabis will not happen this year. However, investors who want to diversify their portfolios are ready to allocate a part of their money to invest in cannabis stocks. Although investing in companies that are “involved in the supply chain, or that provide infrastructure, goods, or services” is a great option, but not for aggressive investors. For direct exposure to the cannabis market, investors should invest in companies with clearly defined launching strategies.
Matt Whittaker advised faint-hearted investors to stay away from the cannabis market due to stocks’ volatility and potential for outright fraud. The potential risk of experiencing investment losses does not fade with asset allocation and diversification. According to O’Neill, only the best cannabis operators such as Biomedican can compete under such harsh industry conditions and ensure your investment growth.
BioMedican has developed a low-cost and high-quality cannabinoids production method. We invite investors to benefit from BioMedican’s ability to participate in the cannabis industry currently gaining enormous momentum.