Over the past couple years there’s been a lot of talk about the “green rush” of the legal cannabis industry. That term refers to the new money-making opportunities ushered in by the growing legalization of marijuana. As cannabis becomes legal in more places, it opens up brand new markets. And that means the chance to get in early on what many investment experts say could become a massive industry.
According to investment experts, there are two main reasons to expect massive growth in the legal cannabis sector this year. The first is the industry’s track record so far. And the second is the success of marijuana initiatives in last year’s elections.
Investment Experts Predict Huge Returns
Although the legal cannabis industry is still in its infancy, it’s already delivering tremendous results. According to tech financial guru Michael A. Robinson, the cannabis industry has been one of the fastest growing sectors in the stock market.
According to Robinson, there have been 64 cannabis companies that have had stock growth of over 1,000%. But he said it gets it even better.
Eleven of those 64 companies saw their stocks rise above 10,000% growth. Stocks in 5 of those companies rose more than 25,000%. Three of them went over 50,000%. And one cannabis company’s stock increased by more than 130,000%.
For Robinson, this is a significant trend to pay attention to. And even though cannabis is still a new and developing market, he said these numbers are important indicators of what legal cannabis is capable of.
“No other market has shown such an uncanny ability to deliver these kinds of gains,” he said. “This is the next big thing.”
Investment Experts Predict A Groundbreaking Year
Another factor influencing experts’ optimistic outlook on the cannabis industry is last year’s elections. November 8 proved to be a huge day for legal marijuana. There were nine states with new marijuana initiatives on their ballots. And those initiatives won in eight of those states.
As a result, 1 in 5 Americans will now have access to some form of legal cannabis. And for analysts like Robinson, that translates into some huge money-making opportunities.
“November 8 was a record-breaking and prohibition-busting day for marijuana,” he said. “I predict these new laws are going to unleash a pot stock boom in 2017 that will blow the doors off anything we’ve seen to this point. And that’s really saying something because this is an industry that has created some astounding windfalls.”
Crunching The Numbers
So just how big do experts think the legal cannabis industry will become? Some experts have predicted that it will become a $35 billion industry by 2020. Others have said it will one day climb to as much as $200 billion.
Robinson provided detailed, state-by-state projections of cannabis industry growth. He broke it down by focusing on those states that voted yes on legalizing recreational pot last November. Here are his predictions for how big the legal marijuana industry in each state could become by 2020:
- Massachusetts: $1.1 billion in revenue
- Maine: $107 million in revenue
- Nevada: $1.1 billion in revenue
- California: $6.46 billion.
The Final Hit
The cannabis scene is in an interesting position right now. On the one hand, there’s more widespread support for marijuana than ever before. And that was reflected in last year’s elections.
But on the other hand, the federal government still classifies cannabis as illegal. In fact, the DEA refused to reclassify it to a less severe category last year.
Despite all this, market analysts have consistently predicted big financial growth. And if those predictions are accurate, legal cannabis could be a significant opportunity for business owners and investors alike.