3 critical points to consider with marijuana stocks

885 0

Several factors this year will either see the industry rise tremendously, or fall quickly

2019 is said to be the year for marijuana. A lot of good things are expected to be seen in the industry this year, including the possibility that the U.S. federal government could finally reverse its long-standing ban on the plant. As the year begins to unfold, there are a couple of key junctures that are especially important to investors to keep an eye on to determine how to move their funds.

The efforts of lawmakers to introduce federal marijuana legislation will be the most important this year. Given that President Trump has reportedly already said that he would support a marijuana bill – and Congress already approved the 2018 Farm Bill that legalized hemp – chances are really good that this year will see significant progress.

Once (and if) legislation is approved, the stock markets should go crazy. Many companies are not able to be listed on exchanges, such as NASDAQ or the NYSE, because of federal limitations. A green light by federal legislators could signal a green light for more exchange activity.

The recreational market in Canada is expected to continue to grow this year. There isn’t enough supply to meet demand, which is currently keeping the market suppressed. However, an increase in production and the possibility that Canada will allow cannabis edibles will go a long way toward strengthening the global industry.

There are a number of high-profile deals in the works, such as Constellation Brands with Canopy and Altria with the Cronos Group. Both of these are going to more than likely produce several new product lines never before seen and will open up entirely new channels of revenue. It isn’t too soon to start preparing the portfolios now in anticipation of what is right around the corner.