For the past nine months, tech stocks have been all the rage. But while tech has Wall Street’s attention, marijuana stocks have been quietly outperforming.
According to a recent report from New Frontier Data, the legal U.S. cannabis industry is expected to grow by a compound annual rate of 21% between 2019 and 2025. That will push legal weed sales from $13.2 billion in 2019 to an estimated $41.5 billion by mid-decade. This is a fast-growing industry with overwhelming support for legalization from the public, which is what makes it such an intriguing investment opportunity.
Every year brings change to the cannabis industry. As we ready to move into 2021, expect the following four trends to dominate the marijuana space.
1. The push for cannabis banking reform
In November, the pot industry let out a collective cheer when Democratic Party challenger Joe Biden defeated incumbent Republican Donald Trump for the presidency. Although Trump has maintained a hands-off approach to state-level marijuana regulation, both of his attorneys general (Jeff Sessions and William Barr) were unabashedly anti-cannabis. Trump himself has shied away from the legalization debate.
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