Small legal market
Americans and Canadians spent an estimated $71 billion on cannabis products in 2016, according to ArcView Market Research. Legal sales constituted 13 per cent of the total.
As more American states and other countries legalise marijuana, legitimate companies are going to capture billions in wealth that goes to drug cartels.
At the moment, though, the market for marijuana investments is erratic. Canadian authorities legalised recreational marijuana October 17 – and cannabis stocks tanked 44 per cent from the start of the month to the end of the year.
The problem wasn’t that legal weed was less popular than expected. Prime Minister Justin Trudeau said a supply shortfall was the biggest challenge.
Cashing in early
Early investors, such as venture capitalists, decided to cash in on a rush