Sure, we can make all the puns we like about investing in legal cannabis (POTentially HIGH returns), but the truth is there could be a very healthy profit here. The growth forecast for legal marijuana is very good.
More countries and US states are legalising medicinal use of marijuana. There is also a softening towards recreational use. For instance, within the past month, the Canadian Senate gave the nod for legislation legalising recreational use nationwide.
Not only that, a UK chief of police has called for the legalisation of recreational use. And, as if cannabis couldn’t go more mainstream, Netflix has launched a cannabis-based cooking show.
We could be on the cusp of a big break out for legal marijuana.
Unsurprisingly, funds that let you invest in a basket of legal marijuana companies have been attracting attention. They’ve been doing well.
The Alternative Harvest ETF has returned 25% since its launch in 2015. In other words, a US $10,000 investment would have grown to US $12,500. A strong return over the period.
The Horizons Life Sciences Index has done even better. It has returned 137% since inception, turning a US $10,000 into US $23,700 in just over a year.