The legalization of marijuana in several states of U.S.A is igniting rapid interest in marijuana stocks. People are fascinated to learn how they can earn profit from marijuana industry.
Over the next five-six years, the U.S marijuana market will be worth more than billions of dollars. According to the estimate presented by GreenWave Advisors, LLC, the five states of U.S namely Washington, Michigan, Pennsylvania, Colorado, and California will have the most marijuana stocks by the year 2021.
Here is a list of top three states that you need to keep an eye on:
1. California
California is listed at the top as it is the country’s largest state with respect to population. In the year 1996, California became the first state in the U.S that approved medical marijuana.
According to a recent poll, around 84 percent of Americans would like to see medical marijuana to become legal all over the U.S. California state acts as the stepping stone to achieve the feat. The state accomplished to earn a whopping $2.7 Billion with medical marijuana; it accounted for 62 percent of medical marijuana sales on a national scale.
It is predicted that by the year 2021, California will be dealing at least $7.7 billion with marijuana sales. California recently legalized marijuana for recreational usage, and it is bound to increase the stocks further.
2. Washington
Washington stands after California as its market is much smaller when compared to the latter; however, they seem to be growing rapidly. It can turn out be the second biggest market in the next five years.
The Washington state reported that they had seen a massive increase in their marijuana sales. In Jan, the sales of various products related to marijuana that includes edibles, marijuana for inhalation, and extracts amounted to $139 million, while in Feb 2016, they had earned only $81 million.
With the said records, Washington can easily reach the predicted sales of $1.9 billion by the year 2021.
3. Pennsylvania
The state of Pennsylvania is relatively new with respect to the availability of legalized medical marijuana; it can become a booming market soon in the coming years. It got medical marijuana legalized just last year, and recreational marijuana is slated to be legal by next year.
Over 900 claimants are competing for the 12 growers and 27 dispensaries for medical marijuana licenses in the state. If recreational marijuana is passed in Pennsylvania, then they can easily touch $1.8 billion by the year 2021.
Currently, the marijuana stocks are limited on the NASDAQ, but it is bound to increase. The investors can keep an eye on GW Pharmaceuticals and Insys Therapeutics for investment purposes. Invest wisely as the trading volumes are kept low making it a little risky for new investors.
