Are marijuana stocks a good long term investment ?

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The marijuana stock market has become one of the most prominent industries of the modern-day. In only a short period of time, cannabis stocks have shot up in value. This is mostly due to the massive investor faith that exists. With the short burst of bearish sentiment hitting the market around a week ago, some have stated that holding may be a better strategy to use. This strategy allows investors to put money into the future of the market as opposed to the volatility of the present.

Currently, marijuana is still illegal on a federal level. This means that it is difficult for companies to operate at high levels within the U.S. With legislation moving toward the future, it seems as though the next five to ten years could be extremely instrumental in surmounting new growth. American investors have shown that they would like to invest in the world of cannabis stocks. With so much up in the air, it can be difficult to pick the right company for the present day. This is where the holding strategy comes in.

Future Projections for the Marijuana Stock Market

One of the best things to think about when considering investing in cannabis is that the future is where the majority of the potential lies. The industry is still very much in its infancy which means that there is a long way to go.

Some investors have decided to turn to the various ETFs and mutual funds that exist for investing in cannabis. These help to give investors a broader spectrum of companies to watch. In addition, they also give investors a lessened chance of seeing the large volatility that exists on an individual company level.

In the current day, the legal marijuana market is worth as much as $10 billion. While this projection may be low, some have stated that within ten years, the market could be worth more than 10 times that amount. That means that we still have a lot of growth and a long way to go.

A Marijuana Stock to Watch for the Future

Innovative Industrial Properties (NYSE:IIPR) is one of the leading REIT’s working out of the marijuana stock market. While the company is not traditionally a marijuana stock, they do operate based in the world of marijuana. The company provides leasing options for facilities used to grow and process cannabis.

With all of their facilities currently leased out, they have remained steadily profitable for quite some time. In addition, they also provide a dividend to investors due to them being an REIT. For the investors that don’t want the volatility of cannabis stock growers, Innovative Industrial Properties may just be the right choice.

All in all, the world of marijuana stocks is ever-changing. The hopes are high that throughout the near future, we can continue to see the market grow. Only time will tell how the legislation can affect the coming years within the marijuana industry and the marijuana stock market.

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