The most populous part of the United States still has a problem with criminalization of marijuana. The Northeast is hopelessly behind the times in regards to cannabis legalization. The West is leading the way in breaking this prohibition of a mostly harmless and even useful medicinal herb. There is no
Legalization is coming to more parts of the country every day. And it is not just in the United States. Legal adult recreational use is coming in Canada. There is little doubt that the opening of that market will have profound implications on the world as we know it. The world of marijuana stocks, that is.
The Opportunity in Medicinal Marijuana
Medical marijuana companies represent perhaps the most stable investment opportunities for cannabis traders in 2018. The efficacy of weed for the treatment of glaucoma patients, cancer patients going through chemotherapy and those suffering from epilepsy is well established in the medical community. There is not a likely backlash against big biotech firms and established companies that get into that business.
The recreational marijuana business is on slightly shakier ground. There is very little chance that prohibition for cannabis will return throughout the whole United States, but the likelihood of federal decriminalization is slim, for now. That means that there is still a taboo in lots of different parts of the country these days. So it is harder for growers and producers to do business across state lines.
The Bankers Dilemma
Publicly traded marijuana companies are finding it hard to comply with financial disclosure regulations, because of how much of their business relies on cash. Major banks won’t touch a lot of companies that deal with weed, because of the fear of federal prosecution. That makes it a lot harder for a company to do the necessary accounting to satisfy Wall Street and financial regulators.
What does that mean for investors in marijuana stocks? Well, it means that it is harder to get into the game, but the rewards could be greater. The more work that you need to do to find the right stocks to jump on, means that less people will be on the train with you. So the profits at the end of the run will be greater. You should be handsomely rewarded for doing the legwork to find the right firms.
Finding Marijuana Stocks
Beyond doing your own research, reading other sites for rundowns of top marijuana companies can be a good place to start. Will that publicly available information always be perfect and lead you to your best trades? No, but that is where you want to start your journey.
Then you make your way to figuring out how to read financial reports, learning advanced charts and technical indicators and staying up on all the latest trading strategies. With all that studying and learning, you make not want to partake in the cannabis product all the time, but moderation can be ok. Just be sure to support the companies that you invest in. Legally, of course.