The cannabis sector is one of the fastest growing sectors in Canada, with legal recreational cannabis fast approaching there are opportunities to make substantial gains whether investing or trading in this volatile market.
We are experiencing a transition in the world and a shift in social stigma related to the cannabis culture. It is fast becoming an excepted medical substance and that stigma is being carried over into recreational use. Canada is leading this transition which provides opportunities for Canadian companies to thrive not only in the Canadian market, but globally as well. This sector is unique in that never before have we had a pre-existing industry become available to investors. This sharply contrasts the .com era as that was a new sector and was completely unknown as far as what would work and what would not. The illegal cannabis market has been thriving and there’s no question as to whether the demand exists, the only question is how much.
As the legalization date closes in and the sector picks up momentum, more and more companies are going public to raise funds to grow into this blossoming industry. The difficulty as an investor is choosing which companies to put your hard earned money into. As an investor you have an opportunity to identify undervalued equities that may be lagging leaders such as Canopy or Aurora or simply choose one of the leaders in hopes they will continue their upward march.