This post is part of a series sponsored by NutraRisk, an Amwins Specialty.
More Americans are showing a growing interest in adding cannabis stocks to their investment mix. In fact, of the investors surveyed by GOBankingRates, nearly 1 in 10 investors said they are willing to put their money in cannabis stocks, with 10% having already done so. However, most experts agree that for Americans to become truly comfortable with diversifying their financial portfolios by investing in the cannabis industry, cannabis use must first become legal at the federal level. According to the GOBankingRates survey, about one-third of respondents said they would likely start investing in cannabis if marijuana were legalized on the federal level.
Today, the U.S. Senate appears to be on the cusp of legalizing cannabis at the federal level. However, just when this will happen remains anybody’s guess, as legislative bodies remain heavily divided. Currently, 35 states have already legalized medicinal cannabis, with 15 legalizing recreational use. The hope is that full legalization will be the next big step.
What Else Will It Take to Bolster Investor Confidence?
Despite the federal legalization stalemate, there is movement in the industry that appears to be fast-tracking cannabis in creating investment opportunities for those looking to diversify. The following are three potential changes that experts believe could help accelerate investor interest and ease concerns about the future of legalization, making people feel even more comfortable about adding cannabis to their portfolios.
- For more states to pass laws in support of medical and recreational cannabis, further expanding the market.
- For companies producing CBD to get the green light to label and sell their products as dietary supplements, creating greater growth opportunities.
- For financial institutions to open their doors to the cannabis industry, providing businesses with safe and reliable banking opportunities.
While the industry is seeing a change in the federal law as a catalyst for making investing in cannabis more appealing, GOBankingRates found that 1 in 5 Americans said they would only consider investing in cannabis stocks if their financial advisor recommended it, and 16% said they might start investing if more cannabis companies went public. Among investors, 1 in 5 said they would only be willing to make an initial investment of less than $100, with 16% saying they would invest between $100 and $499.
Today, all indicators point to the fact that while some investors are ready to give serious consideration to cannabis stocks, others remain skeptical. One thing we do know is that as the legalization of cannabis expands, we’ll likely see more emerging investment opportunities in the cannabis industry.
If you are a retail agent or a broker with clients in the cannabis, hemp or nutraceutical industry, it’s important to work with a wholesaler that is an expert in this space. At NutraRisk, we are cannabis industry experts with access to liability insurance programs serving a wide range of business types and target markets. To learn more about our cannabis and nutraceutical markets and programs, contact Norman Ives at firstname.lastname@example.org or 206-538-5290.
Disclaimer: This article is not meant to provide investing advice. Please contact your financial advisor when considering investment matters.
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