At present, many positive market assumptions and fantasies about the future are certainly priced into the heavily inflated stock prices. As a result, volatility will remain very high over the next few years. Like other speculative asset classes, cannabis investments are not suitable for risk-averse investors, but only for experienced investors. Possible total losses must be taken into consideration. With sufficient diversification of risk capital across multiple securities, cluster risk can be reduced at the same time.
At the same time, risks are faced with great profit opportunities. It is to be expected that a (large) number of the current companies might not survive the next few years, but a close study and investment in promising companies will pay off big for early investors in the still-young sector. We are only at the beginning of a big boom market with strong growth phases.
For example, American market research firm Arcviewgroup forecasts annual average growth of 27.5% over the next three years!
An important role in this expected boom is driven by cannabis related pharmaceutical application (medical marijuana), which can now be legally prescribed in most industrialized countries. But far more growth potential lies in the legalization of the private cannabis consumption. This is legally possible in some countries (for example, since October 17, 2018 in Canada) and in ten US states. Market observers assume that in the next few years more countries will release the entire cannabis consumption. According to research by Arcview, $ 9.5 billion was already spent on legal cannabis products in 2017.