Is it Too Late to Invest in Cannabis Stocks?

It is easily the biggest misconception about cannabis stocks. It’s preventing millions of people from capitalizing on the greatest investment opportunity of my lifetime, and every day the sector rises it only gets worse.

What am I talking about? It’s the #1 question we receive at Cannabis Stock Trades.

Is it too late to invest in cannabis stocks?

The answer is no – not even close.

But in order to understand why it’s not too late to invest in cannabis stocks, you first have to understand the powerful force that has been driving the global cannabis market for the last two years and know when the market is set to break out again.

Cannabis Stocks Soar When Countries and US States and Go Legal

The best evidence of this relationship can be found in the chart of Canopy Growth Corp (NYSE: CGC, TSX: WEED), the largest cannabis company in the world and a bellwether for the broader cannabis sector.

In January of 2017, Colorado and Washington became the first two US states to legalize recreational cannabis. It was a monumental win for the US and global cannabis industries and it sent Canopy soaring – jumping more than 100% from early September to January 3, 2017.

In January of 2018, California, the single largest cannabis market in the world, legalized recreational cannabis. Once again, it was a huge moment for the US and global cannabis industries. Once again, Canopy soared, but this time, even more, jumping more than 255% from early September to January 2, 2018.

On October 17, 2018, Canada became the first developed country in the world to legalize recreational cannabis. It was an enormous moment for the North American and global cannabis industries, and once again it sent shares of Canopy soaring. Canopy jumped more than 100% from late July to October 19, 2018, as new investors piled into the sector.

What do these charts tell us? The cannabis sector soars when new states and countries go legal, but the legalization trend is just getting started.

17 Us States Can Still Legalize Medical and 39 Can Still Legalize Recreational

Right now, 33 US states have legalized medical cannabis and 11 have legalized recreational cannabis.

*Chart from DISA Global Solutions

That’s great progress, but more importantly, it leaves plenty of room for more states to legalize. It means 17 more US states can legalize medical cannabis and 39 more can legalize recreational cannabis.

How do you think cannabis stocks will perform if these other states join the trend and legalize? The charts above tell us exactly what will happen.

Here’s the upshot on the US cannabis market. As more US states legalize, the probability of US federal legalization continues to increase. This is the crown jewel catalyst for the global cannabis industry. It’s actually much closer than most people think, and, if it happens, I expect the cannabis sector to go vertical. Do you want to be on the sidelines if that happens?

International Cannabis Markets Will Dwarf the Size of the US Market

As legalization gains momentum in the US, other countries all across the world are eagerly following suit.

Mexico is aiming to legalize recreational cannabis by the end of 2019 after the Mexican Supreme Court ruled that the prohibition of cannabis consumption and possession is illegal.=

According to cannabis market research firm Prohibition Partners, Europe will grow into the largest cannabis market in the world in five years.

Market research firms New Frontier Data and Greenhub just released a new report predicting the Latin American cannabis market will grow to $10 billion.

These are just a few examples. There are many more that will be unfolding over the next few years.

Do You Still Think Its Too Late to Invest in Cannabis?

As you can see, there is a mountain of evidence suggesting that the global cannabis industry is still in its infancy. As more US states and countries go legal, I am confident cannabis stocks will continue to surge the same way Canopy has in the last two years.

It’s not too late to start investing in cannabis stocks. In fact, the game is just getting started.

How to Make the Most of This Opportunity

Most self-directed trades need help investing in cannabis stocks.

There are hundreds of cannabis stocks trading on global and domestic exchanges, but you have to know which stocks to buy and which ones to avoid in order to be successful.

The cannabis sector also has a history of extreme volatility.

You have to know when to buy and you have to know when to sell.

Cannabis Stock Trades Will Be Your Personal Guide to Cannabis Stocks

Cannabis Stock Trades can help you navigate the cannabis sector with unbiased cannabis stock research and a model portfolio of handpicked cannabis stocks. We send trade alerts to members and tell them exactly which cannabis stocks we are adding to our model and portfolio and why we are adding. When its time to sell, we send out another alert.

Take a free trial to review our research and model cannabis stock portfolio.

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Don’t be someone who only wishes they had taken advantage of their once-in-a-lifetime investment opportunity – go after it with help from CST!

Michael Vodicka
Editor, Cannabis Stock Trades


About the Author & Cannabis Stock Trades

Michael Vodicka is an equity analyst with more than 20 years of experience in trading and investing. His research has been featured in some of the industry’s most respected publications.

He has been investing and leading investors in the cannabis sector since 2013. Now, Mr. Vodicka brings his expertise and guidance to the members of Cannabis Stock Trades.

Join Cannabis Stock Trades for Mr. Vodicka’s exclusive analysis, trade alerts, and model portfolio.

Michael Vodicka owns shares of Canopy Growth Corp at time of writing.