Will Investing In Marijuana Send Your Money Up In Smoke?
August 1, 2018
It’s an emerging investing option that is growing, well…like a weed; Marijuana Stocks.
With nine states and the District of Columbia already allowing personal use of marijuana and 20 others, including Michigan, allowing medicinal marijuana, it’s fair to say that there is an established legitimate marijuana industry in the United States despite federal law still prohibiting its use. Recent estimates say that U.S. retail sales of pot will reach $20 billion by 2022 and could go as high as $50 billion if more states approved its use.
With that kind of money on the table, investors are increasingly asking if they should be taking advantage. Bob Laura is a Certified Financial Planner with Synergos Financial in Brighton. He says for those looking for a direct investment, popular companies are Canopy Growth Corp. (CGC) and Weed Inc. (BUDZ), while those who want to take advantage but not be directly invested might look at GW Pharmaceuticals (GWPH), a British biopharmaceutical company known for its multiple sclerosis treatment product, which was the first natural cannabis plant derivative to gain market approval in any country. Despite all the hype, Laura says marijuana remains a minuscule sector of the economy overall and investors should always proceed with caution with something that is relatively new.
As for Michigan’s proposal, if passed on Nov. 6, it would allow anyone 21 and older to possess and use specific quantities of marijuana as long as they’re not in public or driving under the influence. It would also impose a 10% tax on marijuana sales, which would make Michigan the state with the lowest overall tax rate on recreational marijuana in the nation. By comparison, Washington maintains a 37% tax on recreational sales. (JK)