Although recreational cannabis isn’t set to be legal on a federal level in America anytime soon, cannabis stocks still remain a cash cow for investors.
Well, Canadian cannabis stocks, that is.
A Canadian Green Rush
With Canada set to fully legalize cannabis on July 1, 2018, American investors can similarly profit from Canada’s legal pot market. Experts have predicted that there will be a $22.6 billion cannabis “green rush” upon Canada’s countrywide legalization.
While it is a somewhat extensive process for Americans to invest in Canadian stocks, it could be well worth the small inconvenience.
First off, you’re going to have to find a brokerage that allows you to join the Toronto Stock Exchange (TSE). Additionally, they will have to allow you to convert your money into Canadian currency and deal with the varying tax laws of a foreign country.
One potential way to facilitate trading for aspiring investors is to buy Canadian cannabis stocks courtesy of over-the-counter markets (OTCMKTS). This way, investors can go through a dealer network as opposed to a traditional centralized exchange.
However, the additional work required should be well worth it for those looking to invest.
In the year 2016, North American pot sales reached over $6.7 billion, and according to a number of experts, that figure looks to increase exponentially.
Consulting firm Deloitte believes Canada’s cannabis retail should be worth anywhere between $4.9 billion and $8.7 billion annually. Additionally, pot-related products and services should increase those numbers to the aforementioned $22.6 billion figure.
And that’s not even including licensing fees and taxes, two factors that could also vastly increase revenue.
According to Money Morning Director of Technology & Venture Capital Research Michael Robinson, Canada’s legalization of the plant will have a profound impact on the market, specifically, stocks trading under five dollars a share.
According to Money Morning, the market has already seen exponential increases in tiny pot stocks to the tune of 516 percent, 523 percent, 416 percent, 436 percent, 293 percent and 272 percent. All in all, since the presidential election, weed stocks have increased by a total of over 300 percent.
And when it comes to medicinal cannabis, Robinson said, the results are “crystal clear”.
“It works,” Robinson stressed. “It’s the closest thing we have to universal therapy.”
He believes the medical uses regarding cannabis have dramatically shifted the public perception regarding the plant, which has, in turn, driven up the prices of pot stocks as a whole.
How American Investors Can Profit From Canada’s Legal Pot Market
Robinson believes that penny pot stocks are the way to go, with stocks under five dollars a share set to double, triple or even quadruple.
While this is merely speculation, the investment guru believes that the proof is already in the pudding. According to Robinson, the increasingly legal pot market is “the closest thing to a modern-day gold rush.”
Robinson went on to say that, as history has shown, with every passing of a law regarding the legalization of cannabis, the value of pot stocks have soared.
However, in America, we haven’t yet seen widespread legalization to the tune of Canada’s impending legislation. As Canada is set to become the largest country ever to fully legalize the plant, now is the best time to invest in the right marijuana stocks.
Don’t miss the boat.