It seems like every month now, we’re hearing about another state that decriminalized or legalized marijuana.
Back in 2012, Colorado and Washington started the whole trend. They were the first states to legalize recreational use.
Since then, 21 more states have followed suit. Altogether, 29 states have now made it legal either recreationally or for medical use.
And as expected, business is booming.
Legal Marijuana Sales
Expected retail sales this year in the United States are up to almost $10 billion. And according to the chart below, it could more than double over the next four years.
However, I’d say the chart is actually conservative.
There have been estimates that marijuana will be a bigger industry than giants like soda, alcohol and even the NFL. In fact, marijuana production in Canada has already outpaced that of beer and tobacco over the past several years.
Of course, as it continues to be legalized in more states, revenues will see a boost. But the thing that’s holding it back in the U.S. is its status on the federal level.
Right now, it’s classified as a Schedule 1 drug. That means it’s officially declared as illegal, highly prone to abuse and having no medical benefits. Once that label inevitably gets lifted, we could see sales soar much higher than expected.
Another way that this booming industry is helping out is by creating jobs. It’s estimated that over 400,000 will be created in the industry by 2021.
We’re well on our way so far: Jobs postings increased by 445% last year.
To put the growth in perspective, there are now more people working in the legal cannabis industry than there are dental hygienists in the U.S. And this is an industry that’s only been around at this level for a few years.
Because of the infancy of this industry, the stocks that are associated with it can be very risky. That’s why it’s best to buy an exchange-traded fund (ETF) so you can easily spread your money over a lot at once, while only paying the price of a single stock.
One that I’d recommend is the ETFMG Alternative Harvest ETF (NYSE: MJ).
This fund has a portfolio of 39 stocks that are affiliated with the cannabis industry. So, you’d be investing in all of those stocks at around $30 per share.
Editor, Rapid Profit Trader
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