At the beginning of February 2019, a group of leading analyst and fund managers from the industry gathered to predict all developmental factors that will influence the further booming of the expanding industry of cannabis production and production of cannabis by-products.
Sean Stiefel, Navy Capital’s portfolio manager stated on this occasion that investing in cannabis industry might be “the greatest opportunity of this generation”. Sean Stiefel is managing the first portfolio based in the United States with a focus on the industry of cannabis, seeing a major investment opportunity in this sector.
Cannabis Market Transactions Topped 14 Billion Dollars in 2018
During the last year of 2018, capital market transactions within the cannabis industry exceeded 14 billion dollars, placing a major focus on the profitability of this sector.
The fact that many countries across the globe, including multiple states in the US, have been decriminalizing marijuana for medicinal and recreational purposes in some area, is benevolently affecting the industry to develop further from this point on.
As far as 2019 concerned, there are already around 500 accredited investors, however, in order to bring a massive expansion to the cannabis industry, institutional investors would have to show interest in the sector as well.
For now, institutional investors are playing safe and are being cautious concerning legalities and regulations of cannabis-related business and the industry of cannabis in general.
On the matter of legality of cannabis industry in 2019, Stiefel is predicting that the three initiatives taken by the government and which is related to cannabis, will cause the industry to boom: criminal justice reform, banking reform and protection of the state cannabis reserves.
Cannabis reform should become a matter of the pending presidential elections upcoming in 2020, when it is expected that the industry of cannabis will be properly regulated, attracting institutional investors and pushing growth of the sector.