The boom in the Canadian cannabis stock market and all things cannabis in Canada are on a steady rise with only a few hiccups along the way. The momentum is kept high, and despite several challenges, the industry remains an investors dream.
Although being faced with a lot of negative media in recent times, the Canadian cannabis industry is still the place to put your money when seeking a guaranteed investment return over the long term.
Industry experts agree that an investment in the Canadian cannabis stock is a guaranteed investment for the future going by the latest trends and forecast.
Why Canada Cannabis Stock?
The exponential growth in cannabis stock valuation and the recent rise in capital investment in the cannabis industry has clearly shown the confidence level of investors on the prospects of cannabis and the cannabis stock.
The market activities of buyouts and buy-ins that occur daily in the cannabis market further lend credence to the viability of the market. The market is presently experiencing a positive coalescing trend and with more cases of legalization in the offing across North America, a buy-in today has the potentiality of enormous gains in the future.
There are several valid reasons to invest in the cannabis stock today, but we will only examine a few of those below.
- CANNABIS STOCK PERFORMANCE: Smarting from an astounding performance in 2016 through 2017, the Canadian cannabis stock market experienced a decline in 2018 with the Canadian Cannabis LP Index down 12.7% year-to-date despite a surge in early January to an all-time high. The reasons for this is simple:
Like all strong markets, the decline as some financial experts have put it, “is a correction of a strong advance.” In simple terms, the market is adjusting to the intense pressure and is sure to rise again and the present situation offers a unique opportunity for investors.
Note, the market index may have contracted but investors’ confidence continues to ride high with several cross-industry investments being contracted (such as the alliance between FSD PHARMA and Auxly Cannabis Group to build the largest indoor hydroponic farm in Canada at the former Kraft foods plant in Cobourg, Ontario), sparking more interest in the industry and the transactions holding great promise for the industry.
At present, there are 29 publicly traded Canadian cannabis producers, and this number is expected to increase as private licensed producers (LPs) migrate to the public market.
- FUTURE PROSPECTS OF LEGALIZATION: Although Canada has moved to full legalization of cannabis with little policy hiccup here and there, the big “cahuna” remains the larger North American market.
Several US states have legalized the use of cannabis for both medical and recreational use with a lot of exceptions, but in the coming years, the narrative is expected to change.
The cannabis stock is expected to continue to remain strong, and with more frontiers to cover, an investment in the industry is always a smart choice.
- FORWARD THINKING: The Canadian cannabis stock market is burgeoning with opportunities. The options available to the investor are varied and most often takes the shape of core cannabis investments or support industry investments. This offers the investor an array of options to choose from and an endless potential for capital gains.
The Canadian cannabis industry is forward thinking, and buy-ins, and more into companies like FSD Pharma who are researching on ways to apply the product for the greater good is a good investment any day.