The global demand to buy cannabis stocks is growing…
In economics, desire is a gauge on how willing someone is to do something.
But the key to understanding the true potential of any market is demand.
Demand is putting desire into action.
It’s when you not only want to buy something, but you go out and buy it.
And with the launch of a new ETF, the demand to buy cannabis stocks is spreading across the globe.
Set up by Canadian investment asset manager Purpose Investments in partnership with Deutsche Boerse, the Medical Cannabis and Wellness UCITS ETF is the first cannabis exchange-traded fund to be listed on the London Stock Exchange (LSE).
“Cannabis is a market that’s huge and it’s not going away…There’s a lot of money in the sector that hasn’t yet been brought into the public marketplace…bringing an investment vehicle into the space shows that there are a lot of opportunities here that investors will want to add to their portfolio,” Purpose’s chief investment officer Greg Taylor said in a statement.
We know the demand for buying cannabis is well-established, with an estimated $344 billion in sales across the globe in 2018.
All of those sales just need to find their way into legal markets.
Triggering a $1 Trillion Market
The power of legalization is stopping black market sales and allowing regulated companies to generate revenue from selling safe products.
Just in North America, there was an estimated $70 billion in cannabis sales in 2018. Only around $10.8 billion of that was legal!
Now, with 19 states potentially passing some form of cannabis legalization in 2020, the writing on the wall is clear.
Full cannabis legalization is a question of “when.”
That means revenue and profitability, and that’s why there is a demand from European investors to buy North American cannabis stocks right now.
They don’t want to sit on the sidelines and get left behind.
According to its “Factsheet” data, as of December 31, 2019, cannabis companies in the United States consist of 79.39% of the Medical Cannabis and Wellness ETF holdings while cannabis companies in Canada consist of 20.61%.
The top 10 index holdings are as follows:
- Corbus Pharmaceuticals Holdings Inc. (Nasdaq: CRBP)
- Scotts-Miracle Gro Company (NYSE: SMG)
- Innovative Industrial Properties Inc. (NYSE: IIPR)
- GW Pharmaceuticals PLC (Nasdaq: GWPH)
- 22nd Century Group Inc. (NYSEMKT: XXII)
- Amyris Inc. (Nasdaq: AMRS)
- Charlotte’s Web Holdings Inc. (OTC: CWBHF)
- Zynerba Pharmaceuticals Inc. (Nasdaq: ZYNE)
- PharmaCielo (OTC: PHCEF)
- Cara Therapeutics Inc. (Nasdaq: CARA)
You’ll undoubtedly recognize a few of the names on that list.
And that’s a good thing.
The ETF is holding some of the same stocks you’ve already identified as long-term winners.
That’s going to continue to happen as global cannabis investing ramps up, with everyone from the average retail investor to massive hedge funds scooping up as many shares of the best cannabis companies as possible.
The desire is there across the globe to buy cannabis stocks.
Now more investors can act on that desire, thanks to this new ETF.
That creates demand, and demand is what sends stock prices up.
Until next time,
P.S. With cannabis investing ramping up all over the world, it’s more important than ever for you to get ahead of other investors. That’s why we created the most comprehensive database of cannabis companies available on the market – the “Marijuana Millionaire’s Vault.” Find out how you can gain FULL ACCESS to the “Vault” now to potentially find your next double-, triple-, or quadruple-digit winner.
11 responses to “Cannabis Is Now Available on the $4.9 Trillion LSE”
January 23 2020