Here’s what you need to know about the marijuana market and the best CBD stocks you can invest in.
In this article:
- What Is Cannabidiol (CBD)?
- CBD Market Forecast
- Cannabis Market Leaders
- How To Invest In CBD Inside Your IRA
- Top CBD Oil Stocks
Best CBD Stocks You Can Invest In
What Is Cannabidiol (CBD)?
Cannabidiol (CBD) is a compound found in cannabis sativa plants such as hemp or marijuana. Pharmaceutical companies typically use this compound as an ingredient in manufacturing some prescription drugs.
Unlike tetrahydrocannabinol (THC), this compound doesn’t get you high. It can actually treat specific symptoms and is effective for medicinal purposes.
Patients who believe in the healing powers of marijuana, but do not like it for one reason or another, often use products with CBD for pain relief or even relief from some diseases such as inflammation, anxiety, psychosis, chronic pain, and seizures, among others.
CBD Market Forecast
Marijuana legalization has been approved in many states and other countries in recent months and years. In line with this, investment analysts believe that it possesses a huge potential for revenue.
For many investors in the stock market, however, they consider marijuana stocks as “sin stocks”. For this reason, they opt to expand their investment portfolio by investing in CBD stocks instead.
The Food & Drug Administration (FDA) currently does not recognize the CBD compound as medically beneficial. However, several scientific studies sponsored by the US government show that it could be a treatment to many physical and emotional conditions.
Scientists also believe that CBD, when taken in small dosages, can make people feel focused and more alert. Several research centers have also conducted studies on its anti-cancer properties.
Since the FDA does not regulate the use of CBD products, they are available from online and virtual stores in most US states. Manufacturers are not allowed to make health claims with their products.
CBD is on top when it comes to research and development. The Hemp Business Journal, a leading organization for hemp clinical trials, estimates that the cannabis and hemp industry has a great market and revenue growth potential.
They believe that by 2020, the industry will have a rapid growth to approximately $2.1 billion in consumer sales. Based on their estimate, 21% of these sales come from hemp-based sources alone.
This year’s report says that the demand for CBD products used for chronic diseases is expected to see a massive increase and will help boost the medical cannabis industry. The market research shows an estimated growth from $7 billion to over $55 billion by the year 2024.
Cannabis Market Leaders
The solid growth of the cannabis industry continues to attract many investment opportunities. Currently, the United States, Canada, and Europe are the leaders in terms of recreational marijuana use, medical cannabis, and CBD.
With the positive projections of the CBD industry, those two regions have great potential to continue dominating the field. Additionally, other countries also started opening their doors to legalizing the use of medical marijuana.
Germany, which legalized cannabis for medicinal use in 2017, has a sales forecast of $1.6 billion by 2022. Switzerland has over 400 registered manufacturers and traders of CBD and will probably continue to significantly increase over the coming years.
The United Kingdom has very strict laws when it comes to the use of marijuana. However, with the U.K’s Advisory Council on the Misuse of Drugs, which recommends the availability of cannabis-based medical technology and products by prescription, the future of the CBD market also looks promising in the country.
How To Invest In CBD Inside Your IRA
Want to learn how to invest in CBD inside your IRA? Get our free guide here!
Investing in the CBD market has created opportunities for many aggressive investors. There are several ways to get into a CBD investment.
First, you can start by investing in retail CBD oil. As of today, there are only a few retailers, and it certainly creates a good opportunity for you to enter the market.
Second, there is an increasing number of CBD oil distributors you can invest in. This method of investing does not require you to obtain a license. Instead, it only requires a few collaborative efforts with the distribution companies.
The last option is by directly investing through CBD stocks. There are now many stock companies which cater to the demand for the CBD market growth, and just like investing in usual stocks, investors find it very easy to open CBD investments.
These three ways certainly create a path for you to enter cannabis stocks easily. However, you may want to do your own extensive research first before making any decisions.
Top CBD Oil Stocks
The positive projections of the CBD market make it one of the hottest stocks in the marijuana industry. With this, many CBD stocks also come in to take part in the competition.
While some of the CBD stock companies have established their names in the market, it still can be hard to know which stocks are the best to invest your retirement income.
Canopy Growth, Tilray, Cronos Group, and Aurora Cannabis are just some of the top CBD companies you can consider. With their established names, they all offer long-term investment growth potential and optimal market capitalization.
Neptune Technologies, Isodiol International, Aphria, CV Sciences, CannaRoyalty, and MPX Bioceutical have also begun to make noises in the industry. These companies have taken the beat and started to attract more investors.
Bear in mind that most CBD stock companies do not operate only on the CBD market. Most of them also take part in the marijuana market competition.
While these companies may give you better investment opportunities, it is still worth learning how they can help you fulfill your goals. Growing your investments is important but so is making sure that your hard earned money won’t go to waste.
Growing an investment is more than the whole process of investing your money. It takes patience, focus, and a lot of research to make wiser investment decisions. And just like investing in a real estate, CBD stocks investments require the same effort and maybe even more. This market is relatively new so greater risks are also associated when you choose to invest in this market.
Do you think investing in CBD stocks makes a great addition to your investment portfolio? Share your thoughts with us in the comments section below.