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It’s a new decade, and things are changing—a sign of the times! In November, United States citizens will be electing our 46th president. This time around, a supermajority of the candidates support legalizing cannabis nationally.
Ten years ago, nobody would have predicted this. But times have changed, and as marijuana becomes more acceptable politically, the cannabis stock index is growing, too.
It’s a great time to invest in cannabis. Get your foot in the door before it becomes harder
1. Invest in Top Stocks
When investing in emerging markets, it’s difficult to know who the forerunners will be as time goes on. At the moment, some of the biggest contenders are Aurora Cannabis, Inc. (ACB), The Valens Co. (VLNS.V), and Canopy Growth Corporation (CGC, WEED).
2. Watch the Market Closely
While cannabis stocks continue to rise, it’s normal for peaks and valleys to occur. So, don’t pull your investment the second you lose any money. By following market trends, you can predict trends and pinpoint up-and-coming companies as the industry expands.
3. Diversify for Success
If you’ve ever invested or thought about it at all, you’ve probably heard that it’s important to diversify. But what does that mean?
You can diversify in a few ways. Within cannabis, it could mean investing in some of the biggest names as well as in rising stars like this stock.
Diversifying your portfolio more generally might mean spreading your holdings between a number of industries, and between larger and smaller companies.
It’s also vital to know what risk level is best for you. Some indices rise and fall more dramatically, while some stay stable. Cannabis, as a newer index, is considered one of these higher-risk industries, so it’s a good idea to put some money into tried and true stocks, as well.
4. Keep an Eye on the News
Although many of the current presidential candidates support the full legalization of marijuana, it’s still federally illegal and a divisive issue. While this is unlikely to affect your ability to invest, it does affect how prices rise and fall.
Following business and cannabis news is also a great idea and can help you have a fuller understanding of where your stocks stand in the industries at large.
5. Patience, Patience, Patience
Pretty much nobody gets rich off the stock market right after they invest—and not too many people hit the jackpot like that at all! For most, it takes a lot of waiting and careful management of their portfolios to reap the rewards, so be patient.
It’s worth it, though, and because the marijuana index is relatively new, investing a little now could mean a big payout when selling your stocks years or decades down the line.
Curious About Other Cannabis or Investing Stories?
As you grow your stock portfolio, are you looking to invest in other industries? Continuing to expand your holdings in the cannabis stock industry and in other sectors is a great way to plant seeds for your future.
If this is all new to you, don’t worry. You’re not on your own! Check out our blog for more cannabis and investing news.