Marijuana stocks are becoming more readily available, with many resources already available for investors. As states continue to legalize marijuana, there will only be exponential growth in this sector. Some may be hesitant to invest in marijuana stocks because it’s a newer market, but if you’re looking for a high- reward opportunity, here are five reasons you should invest.

Huge Market

The US cannabis market is huge and ever-growing. This market is virtually untapped, and investors can gain exposure to this high-growth industry with an addressable market. The US cannabis market is estimated to grow to $23.4 billion by 2022, offering plenty of opportunities for investors. According to BDS Analytics, the US cannabis market is growing 23% annually and represents 25% of the global cannabis market. This is a great time to invest in marijuana stocks as the market continues to grow over the next decade.

Decriminalization

The most significant catalyst in the cannabis stock market will be the federal decriminalization of marijuana in the United States. If this does happen, this will provide even more opportunity for cannabis investors. Trends are proving that US politicians are slowly beginning to favor legalization with many Democrats and Republicans in favor of legalization. While decriminalization is not promised, as tides start to turn, and more states opt to legalize marijuana, the market will continue to grow.

Mainstreaming

Marijuana stocks are becoming more and more mainstream. Cannabis investors were limited to buying thinly regulated shares or forced to buy on a Canadian exchange in the past. This was demarginalized when in 2018 a marijuana company began listing its Canadian shares on the New York Stock Exchange, with many other businesses following its lead. As there are more than a dozen cannabis stock listings on major US stock exchanges today, the stigma associated with investing in cannabis stocks has begun to disappear.

Wall Street

Wall Street is now paying attention to cannabis stocks. Until the last few months, Wall Street firms ignored most cannabis stocks, so very few investors paid attention to them at all. Within the past year, this dynamic has shifted drastically. Big-name firms have all began covering cannabis stocks as they have learned that there can be a substantial reward for investors. The more analysts covering cannabis stocks, the more comfortable investors feel, and they’ll buy more to drive share prices higher.

The Future of New Applications

There are many new medicinal applications of marijuana to be discovered. We already know that studies have proven that cannabis has medicinal properties. As more states legalize, you can expect more studies being done to see how marijuana can be used for health benefits. There is a potentially unlimited number of undiscovered medicinal uses for cannabis. As of today, marijuana research is still in its infancy, and we can only expect to learn more about the medicinal applications. As more uses come to light, demand could grow exponentially, resulting in an increase in medical prescriptions. This could both alleviate the stigma associated with cannabis and drive recreational use as well to increase the opportunity for investments.