The 5 Worst Reasons to Buy Marijuana Stocks
Chances are you'd struggle to find an industry that's been stronger over the trailing one-year period than legal marijuana. Cannabis research firm ArcView pegged North American legal weed growth at 34% in 2016 and foresees a compound annual growth rate of 26% over the coming five-year period. Not surprisingly, marijuana stocks have jumped, as an aggregate, by an average of more than 100% over the trailing year, if we only consider the 14 with a current market cap above $200 million.
Aside from the massive sales growth behind pot stocks, changing public perceptions have played a key role. No longer perceived to be on the same level as heroin, LSD, and other Schedule I substances, some 60% of respondents want to see marijuana legalized across the U.S., according to Gallup's October 2016 poll. This represents an all-time record high, and it suggests that pressure could be mounting on Congress to make changes in their scheduling of cannabis at the federal level.
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Source: Fool.com
