The legalization of marijuana in Canada and some states in the United States has opened up the market in a big way over the past year or so. Many new companies have come up which seek to become dominant players in this nascent industry and there lies a big opportunity for investors. In this regard, it could be said that marijuana is something that could eventually replace alcohol and tobacco, the two pillars of the ‘vice economy.’ Pot stocks present the sort of new wave opportunity for investors that generally do not come along too often.
The market for recreational marijuana is huge in North America and even now a large portion of the market is dominated by illegal vendors. If the legal operations can manage to grab more of the market share in the years to come, many of the marijuana stocks could reach heights that have not been imagined before. While Canada has already legalized marijuana all over the country, it is now on the verge of legalizing edibles and associated products by the end of the year. That presents another opportunity for anyone who is looking to invest in an industry that is expected to grow fast.
However, there is no doubt that pot stocks have largely been on a weak run for much of 2019. Most of the highest value stocks have taken a beating over the past few months; however, experts believe that things are all set to return to normal soon. The latest quarterly results of some of the biggest companies have been better than expected and it could well be the start of a new cycle of prosperity in the sector. It is still a new industry and there are plenty of issues that are yet to be resolved. However, there is no question that it is all set to be the new ‘vice economy.’
