Are Cannabis Stocks Worth Investing?

When it comes to financial stability, Millennials and Generation Z people are in trouble.

Current household spending is rising, and a whopping 85 percent of people have seen prices higher than usual for everyday items from groceries to gasoline in the past few months, according to a recent survey by the Associated Press. And because of the global pandemic that is causing huge inflation rates in America, more and more young people are living with family members to help maintain financial stability.

Compared to the baby boomers, the American dream of buying a home and living the way it used to be is gone. Instead, many individuals are looking for financial longevity, especially investments. And the stock market evolves with history. With the legalization of cannabis, marijuana appears to be booming on the stock market. Making cannabis one of the fastest growing investments. But is it worth investing money in cannabis stocks, or is this just a current fad that’s about to fade? Are Cannabis Stocks Worth Investing?

When to Invest in Cannabis Stocks?

There’s no better time to invest in cannabis stocks than now. “Investing in cannabis stocks is a smart move,” said Rick Batenburg, chief investment officer at Cliintel Capital Management Group. “It is an emerging market that is expected to grow significantly over the next few years and decades.” Cannabis made its stock exchange debut in 2018 when legalization in Canada became official. It was the first time in history that Canadian companies had a huge impact. And that the trend has found its way to the USA. As cannabis companies grew, companies made their stocks available for sale, which immediately attracted investor attention.

Legalization has opened up new opportunities for people to expand their financial portfolio and invest in something they believe in holistic wellbeing. And it has also enabled companies to expand shareholders in their businesses. So it’s no wonder millennials and Generation Z are taking advantage of these new investment opportunities. But there are risks associated with every investment.

Investing safer with EFT

Cannabis is still not FDA approved, which means cannabis companies will face prosecution for operating in a state where cannabis remains illegal. Hence, all investors, newbies, and experts must do their due diligence before buying cannabis stocks. In other words: research. However, the research and understanding of how to get into the stock market can startle new investors, but Batenburg suggests that you start simply:

“The most accessible way to invest is in a cannabis exchange traded fund (EFT). An EFT allows investors to buy a group of stocks instead of selecting individual stocks. “

Even at an EFT, new investors should evaluate the broader market to see where current cannabis companies fit into the industry. Some companies that are currently thriving are Curaleaf, Green Thumb Industries, and Trulieve Cannabis, to name a few. Whether you’re investing in a stock or starting out with an EFT, it’s safe to say that cannabis is officially part of the market and it won’t go away anytime soon. “This is not a fad as the market was created to grow emerging businesses. The cannabis industry demands significant capital investments that can only be achieved through the public markets – for the people, for the people, ”said Batenburg.

The cannabis industry on the stock market gives new investors a sense of what it means to build a financial portfolio. It also enables them to invest in what they believe: holistic health and wellness. And what could be nicer than having your money work for you? Especially if it is a power plant.