Article by Marijuana Penny Stocks
There are several states where the use of marijuana – whether for medicinal or recreational purposes, has been legalized in the past several years. This legalization has given birth to the term “green rush.” Green rush may describe the people moving to the states where the weeds are sold legally, with a hope to find cure with their ailments, to freely smoke weeds, or to find money-making opportunities.
The legalization has paved way to the growth of the marijuana industry. For this reason, people are “green rushing” because they see a potential profit in this industry as of now.
The Green Rush Resulted to the Significant Growth in the Industry
According to Arcview -a research firm that observes and investigates about the cannabis industry, the sales of cannabis has increased up to 17%, which is equivalent to $5.4 billion in 2015, and reached up to 25% in 2016.
However, even though there’s a profit potential in this industry, a lot of experts say that investing in marijuana-based industry should be done in the long term. This is because the industry is new and still prone to change in regulations, especially in the federal law.
Higher Investment Risk, Yet Also Higher Returns
Even though cannabis has been approved by several states, it is still considered illegal under the federal law. For this reason, businesses in the marijuana industry cannot write-off expenses about the company’s operation and marketing. This adds to the risk of investment because the company can’t show proof of their operational costs. However the marijuana stock market has proven itself to also give back immense returns to it’s investors in the past few years.