Why? Start with Canada’s expected legalization of recreational marijuana later this year. Of course, there’s also the new legal recreational marijuana market in California. A handful of biotechs focused on cannabinoid drugs also have important milestones in 2018.
The North American Marijuana Index, which tracks 39 leading marijuana stocks, gained over 90% in 2017. I think an even better performance is in store this year. How can you potentially profit? Here’s your 2018 guide to investing in marijuana stocks.
If you’re looking for a pure-play way to invest in marijuana stocks in 2018, look no further than stocks of marijuana growers. And you might as well face north to do your looking, because the biggest and best opportunities are all in Canada.
Several Canadian medical marijuana growers generated fantastic stock returns last year. There were three primary reasons behind this success: a booming medical marijuana market in Canada and other countries, anticipation of legalization of recreational marijuana in Canada, and serious deal-making. I expect all three factors to continue to drive Canadian marijuana grower stocks higher in 2018.