TheCannabis Stock Index(yes, that exists) rose 88.8 percent in 2016 and 91.8 percent in 2017.
Below, what to know if youre looking to add some greenery to your investment portfolio.
How Can Investing in Weed Be Legal?
For many American investors, their dollars actually travel north of the borderwhere marijuana will be completelylegal by July.
This is a sign of the maturation of the industry there.
One example?Kush Bottles, which makes packaging.
They dont have to grow weed or deal with massive overhead or federal crackdown, explained Jason Spatafora ofMarijuanaStocks.com.
They just have to make baggies.
Both kinds can bepurchased through online brokerageslike Fidelity and Ameritrade.
Penny stocks may be cheap, but theyre also risky.
Id never bought a penny stock before, he said.
I bought 10,000 shares for $500.
Two days later, the stock went up 50 percent; two days after that, the stock tanked.
Unknowing investors could become the victim ofpump and dump schemes, so its imperative you do your research.
Is There a Weed Mutual Fund?
Of the two, both Borchardt and Brochstein recommended the former.
Traded on the TSE,HMMJholds shares frommore than 25 companiesand is up121 percentsince its inception in April 2017.
For those looking for exposure to the U.S. market, there arent any ETF options.
Arcview success stories includeMirth Provisions, which creates cannabis-infused beverages, andEaze, a marijuana delivery platform.
But Isnt Now a Scary Time to Jump In?
(Remember that the most legitimate investment opportunities at the moment are in Canada, anyway.)
The best investors buy when others are scared.
Youre never going to see better deals than you do today.
What to Do Before You Invest in Cannabis
Cannabis is undoubtedly an exciting investment opportunity.
But, as with anything, you should do your research first.
check that you thoroughly vet any potential companies, and stay on top of whats occurring legislation-wise.
Start by paper tradingwriting down what and when youd buy and sell, and seeing how you do.
The amount of information out there is overwhelmingas is the amount of misinformation, said Petruski.
In any investment strategy, information is king.
And in this vertical, more so than any other.
