Published with the CFA Institute on the business of cannabis.
The institutional world of finance is coming around to the potential of cannabis! An excerpt:
“…notwithstanding the twin risks of unfavorable tax treatment and overly optimistic expectations of federal legalization, the cannabis sector is what nostalgic investors who recall the 1980s bond markets pine for: an inefficient market where deep analysis of fair values can pay off.
The industry can produce so much more than giggles and munchies. Research into the plant’s non-psychoactive components remains in its infancy but is progressing rapidly. Indeed, cannabis products could have potential applications in promoting gut health and treating cancer, chronic pain, and mental illness, among other uses, and the pharmaceutical industry has taken note.
Moreover, the investment opportunities extend well beyond the United States. Many overseas governments are either encouraging their cannabis industries or at least not impeding them. While the US market may have the highest upside, its international counterparts, for both medical and recreational use, are growing, and many developing countries have lower production costs and more favorable growing climates.”