When looking into stock investments, savvy spenders do their homework first. They analyze various markets to pinpoint products and industry that show real promise in ROI.
Right now, CBD is one of the hottest markets for investing. CBD products like CBD gummies are in high demand, and those who sell them are experiencing untold wealth as a result. You’d be smart to get in on this market before it peaks. Here are a few things you should know first.
1. The CBD industry grew 40 percent in 2017.
A Globe Newswire commentary showed that the CBD industry’s growth in 2017 had reached $367 million in sales, and the market isn’t slowing anytime soon. We currently don’t have numbers for 2018, but forecasts show a similar growth projection, if not greater.
The report discussed some of the many ways that CBD products are being used and distributed, including in the fitness industry for anti-inflammatory and pain relief. CBD for the use of better health and wellness is raking in the dough at a rate that can barely be tracked.
2. Not all CBD providers are created equally – choose wisely.
As you consider investing in this market,
research your options carefully. New CBD products, manufacturers, and retailers
are popping up almost daily. There are hundreds of options to invest in, each
seemingly more promising on the surface than the last.
But don’t be fooled by the constant movement in the industry. The issue with the CBD market is that it has limited governance. The FDA does not regulate the products, and it would be almost impossible to ensure that every single CBD retailer sold good products.
Some CBD retailers do not abide by current laws that require THC levels to be below 0.3 percent in all CBD products. If you invest in a company that isn’t abiding by the law, and they get caught, their stock will plunge and you’ll experience a huge loss.
Stick to investing in the fully legal CBD companies.
3. Big pharmaceutical companies are hesitant to make CBD products.
Recently, the FDA announced its stamp of approval on the first CBD drug, Epidiolex. This drug used to treat epilepsy was groundbreaking for the CBD industry, as it meant that certified research has been performed and some of the health and wellness benefits of the drug are being realized.
However, there’s only one FDA-approved CBD drug. This indicates that big pharma and politicians are still wary of products derived from the hemp plant. Many are hesitant to do research or create products that use CBD for liability reasons.
Since big pharmaceutical companies rule the health investment market, this makes finding the best stocks a challenge. Not all big pharma companies are staying away, though. Look for CBD companies that are beginning research in the CBD market. It’s bound to lead to a CBD drug sometime in the future, and your initial investment can have incredible returns when drugs are produced and CBD is recognized by the medical community for its many benefits.
4. Marijuana may be legal in all 50 states within the next 5 years.
Marijuana has been touted (falsely) as a gateway drug for years. It’s still illegal in 17 states, and many politicians and big pharma companies are resistant to it and all other hemp products as a result.
In fact, the largest argument against CBD has nothing to do with CBD at all. Those who dismiss it compare it too closely to THC and marijuana. THC is the psychoactive chemical compound used independently or in marijuana to create that infamous high. CBD does not have THC in it, but it’s often associated with it just the same.
This is the reason that it’s important to understand where marijuana stands in the United States. CBD is already popular, but just think how popular it will be when misconceptions are corrected. As marijuana becomes more socially acceptable, CBD will too, by default, significantly raising the demand for this drug in all its varieties.
This is likely to occur within the next five years. Until that point, the market is all but guaranteed to continue moving up, so if you get in now you’ll still enjoy a nice return. Those who wait to invest in until marijuana is legal in all 50 states may miss their golden opportunity to profit.
5. CBD stocks are set to explode
No matter your opinion on CBD, its uses, and the ethics behind it, you can’t deny that the CBD industry is growing in a big way. Countless market analyses have shown that CBD stocks are set to explode.
Along with the fact that marijuana will become legal soon in all 50 states, a recent poll shows overwhelmingly positive results in legalizing marijuana and related products. About 93 percent of respondents said they believed it should be legal and that it offered benefits to the general population.
But as any good investor knows, you can’t make a profit if you enter the market too late. Get in now before the boom if you want to optimize your investment. MarketWatch and other financial experts have pinpointed several stocks that they believe are the best to invest in based on market growth and profit potential.
Do your research carefully before investing. And don’t be afraid to try a CBD gummy to see if you like the product as much as the rest of the world does. It could make this smart investment a stress-free experience for you while guaranteeing that you made the right choice.