Make Your Money Work for You

How to Make Your Money Work for You Even if You’re Not Working

Whether you are working from home, the office, or currently seeking employment, your money should be working for you. One of the best ways to put your money to work and increase your income is by investing in companies that are cannabis-focused. Cannabis is a rapidly expanding industry with the potential for high returns for anyone that gets involved.

About Cannabis

Cannabis continues to gain popularity as people discover the medicinal benefits and the enjoyment of it for recreational use. As of right now, cannabis is legal for medical use in 33 states and the District of Columbia. It’s also legal for recreational use in 11 states and the District of Columbia, with plenty of other states showing interest in legalizing it as well.

According to the experts at Money Morning, “Seven states have legalization measures on the 2020 ballot.” If those states follow through with legalization, there will officially be 18 states, plus DC, that have legalized cannabis for recreational use. That will provide a monumental opportunity for cannabis investors to profit off the industry while reducing their risk. The industry is growing at a steady pace. In fact, cannabis spending is projected to reach $63.5 billion by 2024. With notoriety mounting, investors throughout the markets have turned an eye toward cannabis-related stocks.

Cannabis Stock Investing

It’s a good idea to invest in an industry with high potential and a bright future. Cannabis is one of the fastest-growing industries in the United States, and in 2019, cannabis companies raised 116.8 billion in capital, demonstrating the overall positive forecast of the industry’s future. For those that would like to get in on the green rush, there are plenty of cannabis companies already on the stock markets and open to investors. Three types of cannabis stocks are available for trading. Those stocks include cannabis-focused biotechs, growers and retailers, and providers of ancillary products or services. There will likely be more types of cannabis companies popping up on the markets soon as the developing industry continues to attract innovators and new investors.

Cannabis-focused biotechs

A type of company that uses cannabis to create cannabinoid drugs, alter genetics through engineering, or plant breeding. GW Pharmaceuticals is an example of a cannabis-focused biotech company that is currently on the stock market.

Growers and Retailers

Companies such as Trulieve Cannabis and Green Thumb Industries are examples of cannabis growers and retailers. They produce and sell cannabis for medicinal use, as well as recreational use. Some companies also grow cannabis to produce hemp products, which is another part of the industry that is quickly expanding.

Cannabis Ancillary Products and Services

Providers of equipment or services to growers and retailers are considered cannabis ancillary businesses. Without these types of companies, retail dispensaries and growers would not be able to operate. An example of a cannabis ancillary business is GrowGeneration and Scotts Miracle-Gro, both of which are available for trading on the stock exchanges.

Risk Of Investing In Cannabis Stocks

Many states consider cannabis companies to be “essential businesses.” Even with that claim, there can be high risks when investing in companies based around cannabis. Political ideas and laws influence the cannabis industry heavily. With the ever-changing policies surrounding cannabis, it can be difficult to know how long it will remain legal or to identify the future rate of industry growth. Another significant risk involves banking for cannabis-related companies. Under current federal regulation, most businesses that work with cannabis cannot use a bank to hold money or to apply for loans. That puts many companies at risk of financial struggle, robbery, and possibly even tax issues. The government has announced plans to deregulate the banking industry to allow cannabis companies to open accounts and have full access to general business banking services.

On the positive side, investing in this industry is still a relatively low-risk decision. The government has not mentioned any plans to prevent states from legalizing it. The cannabis industry has brought in millions of tax revenue for every state that has legalized it for recreational use, especially. It has become a significant part of the economy for many states. The chances of the federal government intervening seem highly unlikely, and it would not be easy for them as the majority of state leaders are supportive of the thriving industry.

Putting your money to work is an intelligent way to increase your savings and develop an additional source of income for you and your family. To invest in cannabis has proven beneficial for many investors, and it continues to gain support throughout the country.

Check Also

Men's Boot

How to Choose a Men’s Boot

When shopping for men’s boots, you have many choices. Some of the best quality boots …