The legalization of cannabis for recreational and medicinal use has tripled the popularity of Canadian stock among investors and has given them returns as well. The huge gains have made investors aggressively hunt for more shares to add to their portfolio. The thirst for more cannabis stocks can push investors to obtain cannabis penny stocks.
In a bid to make the Cannabis industry thrive, the Canadian cannabis industry has now become a market, free for all. The barriers to entry are low. It is speculated that if demand rises rapidly other players like the Tobacco and other big names will likely enter the market.
This event can cause a rise in Canadian marijuana stock prices, or is this just a mirage?
Why you should avoid Cannabis penny stock
Investors can be influenced by the low price and high returns promised by a penny stock in the long run. However, the odds stacked against the success of these stocks are very thin owing to its high risk and speculative nature.
And they can be a haven for illegal stock promotions and investment scam. Penny stocks, usually ungoverned, can be manipulated by externalities because of its price volatility and uncertain trading methods.
One recent penny cannabis stock scam almost seems like an MBA-style case study on how to launch one of these frauds online.
What to expect from Canada’s stock prices now?
Charts have revealed a steady rise in stock prices, even after legalization, prices keep rising. This rise is an excellent indicator because a lot of investors prefer to invest when stock prices are blazing hot. While a few will still wait for stock prices to rise further before buying, several investors will buy anyways.
The last marijuana bull market saw investors rake in as much as 100%, 1000%, a lot doubling their investments, and a whole lot more tripling theirs.
You will agree that those are life-changing gains. The good news is, the new bull market is here.
Recent charts keep showing Cannabis stocks rising and rising.
What to expect in the future.
While all this might be cheering news, it may not last very long. The world is catching on, and catching on pretty fast. Australia legalized medical marijuana back in February 2016, and huge firms are now lobbying seriously for recreational legalization even as 35% of the Adults support the move up from 13% in 2013. Germany also legalized medical marijuana less than a year after Australia did. Mexico, South Africa, and Argentina have also softened their cannabis laws in recent months.
In total, over 29 countries have legalized one form of Cannabis use, usually for medical purposes.
You might ask, why are people not investing there?
The truth is, the majority of these countries don’t have a proper Cannabis industry yet.
Seize the moment!
The Netherlands and Canada are the only countries licensed to export marijuana.
Canada, on the other hand, is set to dominate the World as a haven for Cannabis and Cannabis related products, as its already exporting the product to five different continents.
In retrospect, we have looked at Canada’s marijuana stock market. Exposed the possible pitfalls that can plague the market and finally giving reasons why you should take the plunge by investing in a Canadian Cannabis stock now.
That’s an extraordinary gain. But it’s nothing compared to what’s about to come. The gains are immeasurable, but it’s little compared to the future of marijuana stocks in Canada.
So, if you consider buying a Canadian Cannabis stock. The best choice is investing in FSD Pharma.