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If you’re looking to invest in cannabis stocks in 2021, here are a few companies that you should keep an eye on. These companies are expected to perform well in the coming year and could provide good returns for investors.
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The Cannabis Market
The cannabis market is growing rapidly and there are many companies to choose from when it comes to investing. In order to make the most informed decision, it is important to do your research. In this article, we will provide an overview of the cannabis market and some of the best cannabis stocks to invest in for 2021.
The size of the cannabis market
The size of the cannabis market is difficult to estimate due its illegal status in most countries. However, some believe it to be worth around $344 billion. This includes the value of both the legal and illegal cannabis markets.
The types of cannabis products
Cannabis products can be broadly divided into three categories:
1. Recreational products: Recreational cannabis products are those purchased for non-medical purposes, such as smoking or vaping. These products typically contain high levels of THC, the main psychoactive compound in cannabis.
2. Medicinal products: Medicinal cannabis products are those used for medical purposes, such as to treat pain or anxiety. These products typically contain lower levels of THC and higher levels of CBD, a non-psychoactive compound in cannabis.
3. Industrial products: Industrial cannabis products are those used in the manufacture of other goods, such as clothing or building materials. These products typically contain low levels of THC and CBD.
The Cannabis Stocks
The cannabis industry is booming and there are many opportunities for investors to get in on the action. But with so many options, it can be difficult to know which stocks to invest in. In this article, we will provide an overview of the best cannabis stocks to invest in for 2021.
The top cannabis stocks
The top cannabis stocks for 2021 offer a wide range of opportunities for investors. From established companies to new startups, there are plenty of options to choose from.
Here are a few of the top cannabis stocks to keep an eye on in 2021:
Canopy Growth Corporation (CGC)
Aurora Cannabis Inc. (ACB)
Cronos Group Inc. (CRON)
Tilray Inc. (TLRY)
Aphria Inc. (APHA)
Curaleaf Holdings Inc. (CURLF)
The bottom cannabis stocks
To help you weed out the bottom cannabis stocks, we’ve compiled a list of the worst performers so far in 2021. These are the companies that have lost the most value so far this year, and they’re likely to continue to underperform in the months ahead.
-Aurora Cannabis (ACB)
-Hexo (HEXO)
-OrganiGram (OGI)
-Tilray (TLRY)
Investing in Cannabis Stocks
The risks of investing in cannabis stocks
While investing in cannabis stocks may seem like a sure bet, there are several risks to consider before jumping in. Perhaps the biggest risk is that of federal interference. In the United States, marijuana is still classified as a Schedule I drug, meaning it’s considered to have a high potential for abuse and no accepted medical use. This classification makes it difficult for companies operating in the space to access banking services, obtain loans, and list their shares on major exchanges.
Another risk to consider is that of over-regulation. As more states legalize marijuana, they’re also implementing strict rules and regulations around its cultivation, distribution, and sale. This could lead to higher costs and fewer profits for companies in the space.
Finally, there’s always the risk that demand for marijuana doesn’t meet expectations. While more and more people seem to be open to trying cannabis, there’s no guarantee that they’ll actually purchase it once it’s legal in their state. If demand falls short of expectations, this could lead to difficulties for companies operating in the space.
The rewards of investing in cannabis stocks
Cannabis stocks, also known as “pot stocks,” have been on a tear in recent years. In 2017, the average cannabis stock rose by 162%. In 2018, the average stock nearly doubled. And in 2019, they more than tripled.
Investing in these volatile but high-growth stocks can be extremely rewarding. But it’s also risky. So before you invest, it’s important to understand the risks and rewards of pot stocks.
The rewards of investing in cannabis stocks are threefold. First, you have the potential to make a lot of money. Second, you’re investing in an industry that is growing very rapidly. And third, you’re investing in an industry that is still in its early stages and has a lot of room to grow.
The risks of investing in cannabis stocks are also threefold. First, these stocks are very volatile and can go up or down a lot in a short period of time. Second, the industry is still young and there are a lot of uncertainties about its future. And third, there is still a lot of stigma attached to cannabis use, which could limit the industry’s growth potential.
