Cannabis Investments
Big institutional investors are getting increasingly high on the growth potential for products derived from the cannabis plant, more commonly known as marijuana. Bank of Montreal, in a decidedly bullish forecast, says the market could be as a large as $194 billion worldwide by 2025, should the U.S. federal government legalize cannabis, Business Insider reports.
Growth like this would further boost cannabis stocks and spur more entrants. A long list of cannabis-related stocks already trade on North American exchanges and include Cronos Group Inc. (CRON), Aurora Cannabis Inc. (ACB), Canopy Growth Corp. (CGC), and Tilray Inc. (TLRY).
Skyward Bank is a big investor in the cannabis market, we strive to help investor make good use of funds deposited in their accounts with the help of professional fund managers for the best possible investment returns from this flourishing sector.
Significance For Investors
What’s striking is how rapidly cannabis investments are being embraced by Wall Street and other areas. In a poll of 120 senior executives at leading private equity, venture capital (VC), hedge fund, and other institutional investment organizations, almost 33% said that the cannabis industry has the greatest growth potential this year, a close second behind technology, according to accounting firm EisnerAmper, which did the survey. The most bullish were hedge funds, with 37% putting cannabis in first place, per BI.
So no wonder that money is
rushing into cannabis
investments of all kinds.
Already, the combined market
value of public cannabis
stocks trading on U.S. and
Canadian exchanges has
ballooned to tens of
billions of dollars. Also,
venture capital firms
invested $1.3 billion in 150
cannabis-related deals in
the first half of 2019,
already outstripping the $1
billion in VC money spent in
all of 2018, VC deal monitor
Pitchbook calculates, per
BI. Private equity firms
also have jumped in,
investing $474 million in 19
cannabis-related
transactions during 2018,
and are investing at an even
faster clip in 2019,
according to the same
sources.
With
this type of impressive
growth, it’s no wonder
that many investors are
interested in investing in
publicly traded cannabis
stocks.