CBD oil has been around for a few years now and some companies in the space appear to have positioned themselves well in the stock market, but is it a worthy long-term investment?
In this article:
- Investing in CBD Oil: Is It a Boon?
- Why Is the Farm Bill so Important for CBD Oil Stocks?
- CBD Oil Benefits
- CBD Oil Effects
- Is CBD Oil Legal?
- Types of CBD Products
Considering CBD Oil Stocks as a Long-Term Investment
CBD Oil Definition: Cannabidiol (CBD) oil is an oil extracted from Cannabis sativa, also known as the marijuana plant. It is a natural remedy for pain relief, anxiety and depression, acne, and many health concerns.
Investing in CBD Oil: Is It a Boon?
Investing in CBD oil can be highly beneficial to investors in the short term. But, is it a great long-term investment?
While 2018 represented a year of volatility on the marijuana investment front, with the signing of the 2018 Farm Bill, it also opened the doors wide for future investors in hemp oil and CBD oil stock.
Why Is the Farm Bill so Important for CBD Oil Stocks?
The 2018 Farm Bill will have a far-reaching impact on the hemp and CBD industries, creating new opportunities for investors and consumers alike.
Not only does it offer federal acceptance for products containing CBD oil, but it also provides protection for farmers who grow the crops to make these products. It allows them to insure their crops and removes restrictions on the growing and selling of these same crops.
CBD Oil Benefits
There are many benefits to consider when it comes to CBD oil. Because of federal restrictions on research related to the use of CBD oil, only a few of its benefits are known.
- It is an effective non-opioid treatment for pain management.
- It treats post-traumatic stress disorder effectively.
- It is shown to be an effective treatment for depression and anxiety.
- It treats Alzheimer’s disease.
- It is a known treatment for multiple sclerosis, epilepsy, arthritis, diabetes, and high blood pressure.
- It effectively neutralizes nausea related to cancer treatments.
These health benefits offer real opportunities for investors who choose to steer clear of more traditional pharmaceutical industries but prefer investments that show the promise of helping ordinary people.
CBD Oil Effects
Because of the war on drugs and the federal government’s stance on marijuana legalization, effective research on the benefits and potential drawbacks of using CBD oil have been limited. The few studies that have been conducted reveal that although CBD oil has few side effects, it is still safe for human consumption.
Those side effects include:
- Low blood pressure
- Dry mouth
- Slowed thoughts or movements
In most cases, the effects were minor enough that they weren’t considered problematic, especially when compared to the promising benefits of CBD oil mentioned earlier.
Before investing, some of the key things to look out for are the purity of the CBD oil and the reputation of the company. This is especially necessary since so many players in the industry will be relatively new as legalization and confidence in the marketplace spread.
One of the challenges investors face is the federal government’s reluctance to get involved. Due to this, there are no regulations in place about health claims, purity requirements, or quality standards. Investors will have to vet their investments on their own for this reason.
Is CBD Oil Legal?
The legality of CBD oil is a big concern to investors, as it should be. Until recently, there were few states that allowed the production or sale of CBD oil products.
Even among those states that do, many have strict regulations about the types of products available for sale and how these products can be used.
A good rule of thumb for investors is to closely follow the laws, state-by-state. Choose to invest in companies offering the widest appeal and availability of products.
This allows greater confidence for long-term investing.
Federally speaking, the 2018 Farm Bill has made the sale of CBD oil legal. It does remain a state issue, with many states offering greater restrictions than the federal government allows.
The theory is that with the federal government reducing regulations, many states will follow suit.
Types of CBD Products
CBD is available in a variety of forms, including many products containing CBD oil available commercially, such as:
- Vape oils: These are oils that can be consumed in vapes. They go by many names, such as CBD vape juice, CBD vape oil, or even CBD oil vape juice. These are CBD vape juice liquid extracts of CBD oil that consumers take orally.
- CBD sprays: There are many options for CBD sprays, including nasal sprays. These include popular CBD gummies and other edible products that contain very little, if any, THC.
- Pet products: There are many healing pet products available through veterinarians that contain CBD oil. These products are used for promoting wellness, preventing disease, and healing alike.
- CBD oil products applied to the skin.
- CBD oil in pill form, which is often easier for consumers to carry around with them.
What does all this mean for CBD oil stock investors? It means opportunities abound for investing in the oil and the industry.
As more states begin making concessions for the wider use of CBD, without going the extra step to legalize marijuana completely, these opportunities will grow. Of course, so will the playing field.
With each new competitor, and regulations only beginning in this wide open marketplace, it is more important than ever to take time and choose wisely when investing in CBD oil, hemp, and other similar investments.
Whether an investor is looking for long or short-term investments in the CBD industry, they should consider working with experts who can help them develop a long and short-term strategy to help them achieve their financial goals.
What are your thoughts on investing in CBD oil stocks? Let us know in the comments section.