Is Investing in Cannabis the Smart Thing to do in 2020?

Is Investing in Cannabis the Right Way Forward In 2020? (Expert Forecast and Lots More)

should i invest in cannabis stocks and companies

The legalization of cannabis is one major topic that will come to the forefront in terms of policy consideration in many countries very soon. More countries are beginning to see the potentials this multi-billion industry has for the future although with the way things are going, the United States will probably lead the pack. As of now, about 33 states have legalized cannabis for medical use while 10 of these allow adults to use the drug for recreation.

For investors in cannabis stocks, 2019 hasn’t fully met up with expectations but all experts lean towards a much better 2020. This is majorly because of the current widespread acceptance of cannabis. With every passing quarter, the industry scales new heights and moves even further towards unparalleled greatness. More entrepreneurs and individuals are plotting and going over their plans to be a part of the booming sector.

Although all projections and analysis point towards a much better 2020 some people still have some reservations, some believe that the cannabis industry still needs to mature a bit before too much is expected. Although this is rational, cannabis isn't quite slowing down. From 2014 to 2018, cannabis sales tripled worldwide leaving us with the expectation that it would grow even further in the coming decade. This will make cannabis stocks very attractive for investors as it provides the opportunity to make a once in a lifetime deal.

A lot of the action in cannabis world in 2020 hinges on the passage of the Safe Banking Act which allows the financial sector to allow banking, insurance, and investments from cannabis businesses. This event will be a major event to look forward to in 2020, it can break or make the year for a lot of cannabis investors and the significance of it can't be overemphasized. But currently as things stand the major predictions of happenings in the cannabis industry in 2020 include:

As a result of the Farm Bill’s passage, there has been an increase in the production of cannabis which translates to more cannabis-related products hitting the market in 2020. The presence of little or no laws guiding the manufacturing and distribution of cannabis-related products has made it very profitable and we can certainly expect more of the same in the cannabis space in 2020.

Product liability insurance rates on the cannabis business are expected to jump 30 to 40% in the coming year and are going to be a necessity. This is a result of the significant number of claims that are currently in court making carriers to be more careful and conscientious about insurance on goods.

More cannabis businesses will be facing intense checks as they move into the next phase of business in the coming year. This means that those businesses that fail to meet up with the standard will face challenges and possible wind up of their operations, leaving room for consolidations and takeover to take place.

An increase in product testing and regulations is expected to begin in 2020 for cannabis manufacturers and distributors. This comes as a result of the fact that several of these businesses have taken advantage of the lax controls on regulations and has led to several litigations in court. The product testing and regulation will lead to fines and sanctions for those who fail to keep up with them.

In addition to the above, the federal legalization of cannabis will be at the top of discussions in 2020 as the presidential election might shake things up a little bit. This is putting into consideration that there are various new bills regarding cannabis already in the new congress. Also, the passage of the Safe Banking Act will highlight the effects of previous legalization of cannabis by some states to serve as a guide for the discourse of federal legalization. It is also expected that in January 2020, Illinois will legalize cannabis use thus becoming the 11th state to do so.

The Growing acceptance of the medicinal properties of cannabis is also a strong reason that will work in favor of the cannabis market in 2020. This is especially thanks to the widespread consumption of cannabidiol (CBD) which is a non-psychoactive compound found in cannabis. It is being used in a variety of products such as oils, pills, and edibles due to its reported healing properties. This has, in turn, led to more funding and investments into cannabis companies which doesn’t seem to be drying up any time soon but rather projected to increase in the coming year.

Bottom line

Cannabis is the future, and at this stage it's not a question of 'are you invested in cannabis?' We're currently at the 'why in the world are you not in cannabis stage?'. The data and information about the market are littered everywhere, the transparency gives room to everyone to know the what, why, and how to take a bite of the big apple nature's Santa Claus has provided. If you haven't fully committed to cannabis, it's not too late, get on board and enjoy all the industry has to offer because one thing i know for sure is that cannabis is that gift of nature that keeps on giving.