Marijuana Forecast for 2019
Here we are again. The marijuana industry is in the midst of a downturn and investors are wondering if now is the time to pull out. By my reading of the marijuana forecast for 2019, that would be a very bad idea.
Many want to proclaim that the marijuana sector’s best days are behind it, and that all the gains that could be made are in the past. They are, frankly, just plain wrong.
There are two major reasons that these doubters will be looking silly: initial public offerings (IPOs) and global expansion.
First, let’s tackle the international marijuana market.
Many of my favorite marijuana companies are making very savvy business moves by acquiring footholds in a number of nascent markets, from South America to Australia and everywhere in between.
Countries like Germany represent extremely lucrative markets that are just waiting to be tapped into. Now that Canadian marijuana legalization is out of the way, other countries are witnessing just how much of a boon marijuana legalization can be for a country.
In fact, it’s a blessing that Canada, a relatively small country (population-wise) was among the first to legalize pot on a federal level. Look how much growth we saw in the market when 36 million or so people gained access to legal pot. Now imagine what will happen when a country like the U.S. pushes legalization forward.
We’re seeing progress made every day, both in the U.S. and around the world when it comes to recreational pot legalization. As these markets open up, expect to see marijuana stocks balloon.
Another reason that the marijuana forecast for 2019 looks so bright to me is the potential for IPOs to generate huge value. The obvious example is Tilray Inc (NASDAQ:TLRY), which was the first marijuana IPO.
TLRY stock shot up by 1,000% in a matter of days following its IPO. That means, in the span of less than a month, an investor who put in $1,000 in Tilray could have cashed out with $10,000. Not a bad return, if you ask me.
While that number eventually came back to earth, we’re several months on and Tilray stock is up 500% from its IPO price.
As the legal cannabis market continues to expand, expect to see a number of IPOs in the future that will likely generate similar returns.
While a 1,000% increase in just a few weeks is unlikely to occur in every situation, the chance to double, triple, or quadruple your money in a very short time still exists with the marijuana industry.
The marijuana stock market is experiencing a downturn, yes. But this happens all the time in an industry as volatile as pot.
The important thing to remember is that the marijuana forecast for 2019 looks incredibly bright for both current and future marijuana stocks.
Whether it’s due to further investment from outside sources like Big Tobacco or Big Alcohol, a legalization effort in a major country, or a hot new IPO, investors of all stripes have the ability to make serious gains on their investments if they play the market well.