Alternatives

Cannabis… A Growing Market?

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Nerves, nerves, nerves.

So NERVOUS.

How come?

Cos I’m THIS close to signing off on choosing a real estate agent to sell one of the properties in the portfolio.

As much as I hate selling, I think it’s time.

I think so… I mean as part of the annual review, I’ve identified that it isn’t really pulling its weight.

The long term fundamentals still remain, but there’s too much ongoing maintenance and other dramas for it to work short-term.

Image result for plumbing issues gif
You had one job tap.

Plus, I’m looking to reinvest any proceeds into something a bit better (hopefully).

Still, procrastination affects all of us, and if it wasn’t for MrsFrugalSamurai’s gentle prods “stop moaning and get off your backside and do something” – it’d probably still sit there. A thorn up my behind.

But man, here’s hoping I made the right choice.

Need something to calm me down…calm me down…

… ma…marijuana?

Weed

I wrote a piece on the growing market of cannabis earlier (here) and feel like it’s time to revisit.

Cannabis has attracted a wave of investor attention in recent times, with explosive boom and bust cycles in the short-term.

On the ASX, there has been a flurry of stock listings as well (see all the companies in the sector here).

As I wrote earlier, as research ramps up and commercial viability is explored, the legitimacy of an investment in the cannabis sector is becoming an increasing reality, and more socially acceptable as it starts to enter the mainstream.

Image result for illegal cannabis farm
From little things big things grow.

Medicinally, cannabis has been used in the treatment of a number of diseases and conditions such as:

  • Anti-nausea for chemo patients of cancer sufferers
  • Alleviating or eliminating convulsive muscle spasms in diseases such as epilepsy, multiple sclerosis, strokes and Parkinson’s.
  • Potential treatment for insomnia, eczema, pain relief, melanoma and even autism.

Although it should be noted that ongoing clinical and medical trials are still being conducted to determine the effectiveness of such treatments.

And there’s an increasing list of celebrity endorsements for medical cannabis with such names as Whoopi Goldberg, Morgan Freeman, Lady Gaga and Olivia Newtown-John among others to promote and speak positively about the plant.

The market

So it’s not really a big surprise to hear about companies such as Grand View Research estimating that the worldwide cannabis market could reach an astounding USD 146 billion by 2025.

Australia’s current market is valued at around AUD 6.3 billion.

With 1,000 registered Australian patients currently receiving cannabis as a prescription medicine, experts believe that number could reach 400,000 patients by 2028.

190819-2
US legal marijuana market size, by product type, 2014-2025 ($USbn)

Who’s Thirsty?

More mainstream, it seems the big beer companies are also getting into it.

Constellation Brands (parent company of names such as Corona and Svedka Vodka), Molson Coors, AB InBev SA (Budweiser) have entered into development phase of non-alcoholic cannabis-infused beverages.

Although with anything in the very early days – there’s a lot of “potential”.

But caution must be noted, as this is very much an investment market in the infancy and at the frontier of alternative investments.

You’d assume that it’d take many years for cannabis to reach large scale commercial viability.

Remember this!

Finally, we must not forget the controversial purpose of cannabis as a recreational drug.

Personally I have seen the devastating and long-term effect cannabis abuse has caused within my circle of peers and would never condone this drug to be taken as such.

Honestly, if you don’t need it – just don’t do it!

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