Should You Invest in Hemp Stocks in 2019?

Did you know that the top 10% of Americans own an average of $969,000 in stocks?

No wonder that with stocks being so popular the average person is looking into having their own.

The 2018 Farm Bill legalized hemp for agricultural production. People are no paying attention to stocks in hemp cultivation companies. Keep reading to learn more if you should invest in hemp.

Should You Invest in Hemp Stocks in 2019?

When Donald Trump signed the Farm Bill of 2018 legalizing industrial Hemp and the production of Cannabidiol (CBD) from hemp plants lots of things changed for businesses and for the stock market. Even Lego blocks are investing millions to change their lego pieces from plastic to hemp.

Before you start investing money into Hemp stocks it’s important to learn more about the industry and do further research. This will help you make a decision on learning how to pick high-quality stocks and if it’s worth the risk to invest in hemp.

Understanding the Market as a Whole

It’s a good idea to look at the cannabis market as a whole. A few questions to ask are:

  • Is the industry moving forward in the right direction?
  • Is the industry coming to a halt in the near future?
  • Are certain industry sectors doing better?
  • Which industry sectors are riskier?

These four questions above are to get you started on your research. 

Industry Sectors

Looking at different sectors within the industry is a great way to understand where the most money is going. Bloomberg has a detailed chart showing the different sectors and their value.

According to the Bloomberg chart, this was the value of each sector when it was shared:

  • Pharma/Research: $1.5 billion
  • Producer: $645 million
  • Consumer: $302 million
  • Real Estate: $216 million
  • Consulting: $170 million
  • Tech: $162 million
  • Industrials: $54 million

Keep in mind that at the time this chart was shared these were the numbers. They probably haven’t changed too much between then and now to make the order above different.

Investing in Hemp

As with any type of investing some investors make money and some don’t. There are three types of stocks you can invest in:

  • Cannabis biotech: companies that focus on developing cannabinoid drugs
  • Marijuana growers: companies that cultivate, harvest, and distribute to the consumer
  • Providers: companies that provide products or services to growers

The biggest risk for hemp stocks are the legal and political issues that the industry as a whole face. Under the DEA the CBD approved products need a doctors prescription in the states where it’s medically legal but under the Farm Bill that was recently signed, there’s no prescription required.

Times are changing and it’s good to stay on top of the laws and changes that are happening. Thanks to technology, we can make sure we stay on the know as more places on the internet such as this online store open their doors during these exciting times.

Exciting Times

As the cannabis industry evolves there will be volatility in the marketplace because it comes with the territory of changes, and new laws signed. The question to invest in hemp at the end of the day is up to you.

There will always be new stocks to research as new companies pop up during these exciting times of change in history. 

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