KSHB - 5 Ways to Invest in the Marijuana Craze With Ancillary Stocks
To a number of Wall Street pundits, the marijuana industry is the greatest thing since sliced bread. After delivering $10.9 billion in legal worldwide sales in 2018, the global pot industry could see sales soar to $200 billion in a decade. For those curious, that's a cool compound annual growth rate of 34%, which is something investors are used to see with the rise of cutting-edge technology, and not the legalization of a plant.
But the ongoing maturation of the marijuana industry has also exposed weaknesses. Cannabis stocks have dramatically underperformed the broader market for nearly five months, with persistent supply issues in Canada, and a resilient black market in recreationally legal U.S. states, mostly to blame. This has caused most direct marijuana players -- i.e., growers and retailers that actually touch the plant -- to get walloped.
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