I want to talk about a break out topic right now, which is how to properly invest in marijuana stocks.
I'm going to break it down into a few key points for you to better understand the landscape.
Pot stocks, also called cannabis stocks, are pretty important nowadays because of the crazy amount of growth that's happened in the industry.
The first step is to know that there are at least two different variations of cannabis stocks.
In the United States, there are about 33 states where medical marijuana is legal.
As the number of states that have also legalized recreational usage of marijuana continues to increase, people are starting to feel that eventually, it'll be legal across the United States.
This will allow for a massive increase in the market cap of worldwide spending on cannabis.
There are reports by Arcview Market Research and BDS Analytics that estimate worldwide spending on cannabis was around $12 billion in 2018 and will probably rise to around $33 billion within a few years.
Another thing that needs to be cleared of is that different parts of the plant have different properties.
The CBD portion is the one that doesn't have any psychoactive properties.
It actually has several health benefits and it's used to treat different ailments.
As of early 2020, there are about 50 public companies.
That may sound like a lot at first.
However, if you do the research on this industry for a few weeks, you'll be able to have a good grasp of the space.
This is rare in other market spaces where there are hundreds if not thousands of companies and you can't ever really grasp it all.
It's definitely important to go ahead and figure out where the publicly-traded cannabis stocks are.
There are both the actual growers/retailers and the biotech companies on the different markets.
Make sure to understand that this industry is still developing.
The bill that made its way through Congress in November of last year gave a lot of rally to the recent stocks and people are getting pretty excited about it.
Once it becomes federally legal, you'll see a huge increase in the number of companies on the market.
To better understand which companies will fall into which of these categories it is necessary to do a bit of technical analysis.
You can take a five or 10-hour course on how to analyze financial statements and learn how to recognize when a company is massively in debt or is very profitable and growing in a sustainable fashion.
For more specifics, we teach all of this at Inpennystock.com and at In Penny Stock University.
So check that out if you're interested in learning more about the step-by-step details on how you can get started trading marijuana or cannabis stocks.