This means that any investments in this market will do incredibly well, and you will be more likely to make money than lose it. However, just like with every market and industry, you will go through good and bad times, and you just need to hold out for the spike in the market.
People may be nervous to invest in CBD stock because of how new the market is. CBD is a newer product to the market than marijuana itself and many people don’t know about it just yet, however, it has proven to have steady growth and looks as though it will only grow more in the future, making it a worthy investment, despite it still being a new market.
This has allowed the CBD market to grow incredibly quickly and become something that will most likely remain popular for a long time.
Investing in stocks should be based on future predictions of what might happen in that particular market and whether it looks as though it will grow and bring in more money. People don’t want to invest in stocks that have no potential, however, this isn’t the case with CBD.
Why you should invest in CBD stocks
It’s no surprise that the CBD industry has exploded in recent years, as more and more people are turning to natural remedies for relief. With a growing number of states legalizing the sale of medical marijuana, it is becoming easier than ever to find this product at your local dispensary.
Are you looking for the next best thing to invest in when it comes to making money and want to know if CBD stocks are a good option? Do you want to know if it will be reliable and a good place to put your money?
When it comes to investing in stocks you need to be particular about your choices and make sure that you are choosing stocks that will grow in the future rather than tank after a few months.
What does the Cannabis market look like?
Since 2012 there has been gradual legalization of both recreational and medicinal cannabis around the US and the world at large. Legalization has made cannabis products much more popular and encouraged the industry to continue to grow at a rapid rate. CBD is a component within cannabis that is known as the healing compound and is used for medicinal reasons to treat and help with a multitude of ailments. This compound has no psychoactive effect, and this means that it is more readily available to people in places such as drug stores, grocery stores, and more.
The steady growth of the CBD industry through its products and services, in all sectors, provides a healthy indication of a prosperous future. Through more research into the market, it becomes clearer that the future of the CBD industry looks as if it is only going to grow in the future.
Bills have been introduced to amend the Federal Food, Drug and Cosmetic Act and its regulations of hemp-derived CBD. The best guess as to why they haven’t moved forward is that Congress got distracted by the pandemic. But they should be picked up again. If the FDA finally gets out of the way, these CBD stocks are going to be major beneficiaries.
Here’s how that works…
There’s a lot of overlap between CBD stocks and pot stocks. Which, of course, makes perfect sense. The cannabis plant has scores of active chemical compounds in it. One of them is delta-9-tetrahydrocannabinol (THC). This is the compound that gets stoners… stoned.
The other big one is cannabidiol (CBD). This compound has no psychoactive properties. But there are a whole lot of potential health benefits. Now, marijuana producers have no need to weed out the CBD. However, companies focusing on CBD do have to keep out the THC if they want to sell their products over the counter. But it’s not terribly difficult if the CBD is derived from industrial hemp – which, unlike marijuana, is not a controlled substance.
If you’re looking for additional ways to grow your portfolio, consider signing up for our Profit Trends e-letter. It’s packed with investing insight from market experts.
The federal government won’t arrest folks for growing hemp anymore. Extracting CBD or possessing it isn’t a federal crime anymore either. Well, as long as there’s less than 0.3% THC content. But not all states see eye to eye with the feds. Some states still want to see more evidence of the benefits and lack of drawbacks. And in some states, CBD remains blacklisted.
When Greenwich Biosciences received approval for its epilepsy drug, Epidiolex, it was initially considered a controlled substance… simply because it was derived from marijuana. But when the company requested it be removed from the controlled substances list, the Drug Enforcement Agency (DEA) agreed. This was a big deal because it was the first time the DEA removed any type of cannabis compound from Schedule 1. And this could prove to be a tipping point.
Warning: More Politics & Science Ahead
Read next: Best Marijuana Stocks List for 2021 (With 10 Investing Opportunities)
This company has two distinct segments: consumer products and drug development. The consumer products one is straightforward. It focuses on manufacturing, marketing and selling CBD products. On the other hand, the pharmaceutical division is constantly trying to push the needle and develop novel CBD-based therapeutics. But the company already has the top-selling hemp-derived CBD oil on the market.