I’m not much of a financial mind – I certainly didn’t get a college degree in anything related to business – but I do like to keep my eye on the stock market. I don’t have a lot of financial know-how, other than I like to invest (when it comes to the stock market) in things that I believe in.
It is no secret if you’ve visited this site for any amount of time that I am very passionate about CBD. It has absolutely changed my life for the better, and I know I’m not alone in that. CBD has helped countless others get relief from pain, anxiety, and mental issues, not to mention it has improved the livelihood of many pets as well.
But just because anecdotally I, and many like me, have benefited from CBD, does that make it a good opportunity when it comes to the stock market?
Investing in CBD Stocks – Good Idea or Bad Idea?
I will give you a short answer, and then I’ll explain my reasoning. I agree with the assertion in this Forbes article that CBD stocks provide a lot of opportunities, but also a lot of risks. I’ll tell you why.
The CBD market has grown by leaps and bounds in the past couple of years. Last year it saw revenue of over a billion dollars (or two billion, by some estimates) and many experts in the industry expect it to grow to over twenty billion over the next few years. This year will certainly be a big one for CBD, as I write here.
Part of the reason for this expected growth is the passage of the Farm Bill in 2018, which included the Hemp Act. You can read more about this legislation here (hlcomic.com/how-new-farm-bill-will-affect-cbd). What this bill basically did is make the growth and distribution of CBD legal on the federal level. This is big news nationwide and sets the stage for a booming industry to grow even larger.
However, the passage of the Farm Bill comes with a caveat. As I said above, this made hemp legal on the federal level. It is still up to each individual state to make their regulations and codes regarding these kinds of products. Some states, like Maine, have seen a lot of chaos when it comes to enforcing what is allowed and what is not.
The cause of much of the gray area that CBD currently resides in has a lot to do with the FDA. While CBD has been legalized federally, the FDA has not yet approved this alternative medicine for consumption. With that non-ruling, this technically makes all edible and ingestible forms of CBD illegal across the states. You can still use it as a topical balm or salve or vape it, but you cannot have it in food or drink as it is not an approved food additive. Some states have been enforcing this, most have not.
The cannabis industry is pleading with the FDA to hurry up their research on this medicinal compound and make a ruling as to clear up any confusion and so clear guidelines are set. As it is now, there are a lot of unknowns.
As presented above, this is an industry that is growing at a tremendous rate. However, there is still a lot of red tape until it is clear to soar to even bigger heights. If you want to possibly on the ground floor now, there could be a lot to gain, though there is a lot of risk as well.