As more states legalize pot, the price of pot will continue to fall and there will be more competition. So it might be a good short term investment, but it is very volitile. Also there are different types of pot, so assume in the future that certain types of pot will become branded. So in this case it becomes a bit of a crapshoot, unless you are an expert in pot smoking it is hard to know which pot is the best. It is one of those stocks you might buy for fun, not a serious investment.
This has to be looked at from a longer-term perspective and how global legislation trends evolve. Even if the US were to ban its sale, there's nothing to say that Germany or France wouldn't allow it. And then it would come down to any listed stocks having a scarcity premium. The names would become very popular simply because they would be one of the few ways in which to play the theme.
A wise policy, but I would like to note there are many companies out there who deal with medical marijuana, which has special federal provisions and could easily be a profitable venture. Compared to Colorado Bob's Discount Blunt Cabana, they are usually sound and safe investments. This is 100% a solid viewpoint on recreational marijauna though. It will need to be federally approved and regulated before I'd recommend getting involved in that market.
Many of those legit companies are in trouble these days because of an over-supply - everybody and his brother who wanted to be a legal pot grower jumped in pretty much all at once. There's a million other more proven ways to make lots of $ in the markets.
Marijuana will not be banned. Anyone who think so has been very misinformed. The chemical components in the plant consist of other healing properties other than THC, the psychoactive component. This is a medicine that should be held in esteem similar to Tylenol, cough preparations, and other nonaddictive (physically) remedies we know of. In 50 years people will have made their fortunes on it and look back at the people who missed out on the investments and scratch their heads. People could invest in arms and weapons manufacturers but not a weed with mild intoxicating value. I say invest and you will not be sorry. The demand is way to high.
Pot becoming legal in some states and possibly someday becoming legal on a federal level does not guarantee that everyone who invests in pot-related companies will profit. There's always risks in any investment - whether it's oil wells, water companies, food, whatever. It's speculation, too much legal and political risk for me. Pot growers in Colorado are going broke because there's too much of it on the market. There's a million other things to invest in.
Agreed, there is just way too much risk at this juncture. Between the legality (still very illegal at the federal level and most states), the regulatory level (the states that made it legal are still finding their way), the supply factor (between legal sources and illicit competition), and everything else, I can't see parking money in this right now. It may well shake out to be an industry to invest in. Or not. But I'm not going to gamble on it right now.
While I think more and more people are beginning to realise that marijuana isn't has bad as what was first thought, if it is made legal then there will be a lot if money to be made out of it. If this is something that I would look into investing in is a different story though.
It seems like the kinda thing that could go either way. On one hand, the whole thing might explode as it becomes legalised, meaning that if you get the buy it when it's cheep, you could seriously earn some money. On the other hand, if it's sudden;y banned, the value will plummet and you'd be at a loss.
