Are you bored with your current portfolio? It may be time to look into alternative investment. If so, we can help. In this article, we explore why cannabis stock may be right for you. We also go through some advice on how to buy your cannabis stock.
The worldwide use of cannabis, whether it be medical or recreational is increasing, which means there has been rising popularity in cannabis stock. Companies all over the world are seeing growth, especially in countries like Canada, where recreational use has just become legal in 2018.
Continue reading to learn why you should be considering an alternative investment and exploring the expanding world of cannabis stock.
First we should be answering the question of What is an alternative investment? Alternative investments that don’t correlate with the market of stocks and bonds. You are probably familiar with typical stocks and bonds. These would be considered traditional investments and make up the bulk of a retail investor’s portfolio. These investments have proven successful in providing returns and keeping investor happy (for the most part).
An investment that does not fall into a traditional asset class, such as stocks and bonds, is considered an alternative investment. Institutional investors or high-net-worth individuals hold alternative investments. They are usually more difficult to handle and profit from due to low liquidity. Stocks of large companies are much easier to sell than pieces of art or classic cars. A lot of these investments also have high minimum investments and fee structures compared to traditional investment types.
Diversification and hedging are two perks of alternative investments since they have little correlation with standard asset classes, making alternative investments the perfect addition to your portfolio. This has led many institutional funds, like pensions, to place a small amount of their portfolios to alternative investments such as gold.
While the initial investment price of an alternative investment may be high, transaction fees usually remain low because of the lower rate of turnover. You will probably hold onto these investments for longer than other investments but it can result in tax benefits because investments held for over a year are subject to lower capital tax gains.
Cannabis stock is becoming a very popular investment as the legalization becomes more frequent, especially in North America in Canada and various locations in the United States. Global spending reached $9.5 billion in 2017. This is predicted to rise to $32 billion by 2022 with an average annual growth of 27.5%.
When thinking about investing in cannabis stock, there are a few things you will need to think about before making your decision. First, you will need to know what the marijuana industry produces. The two basic categories are medical use and recreational use.
Medical marijuana can be used to treat anxiety, depression, pain and stress, using ingestible products such as foods and drinks, or inhalable dried flower or vaping products. There are also CBD products. Recreational use refers to using cannabis for the psychoactive attributes of THC, an active chemical in marijuana.
You will also want to be aware of the different kinds of marijuana stock. There are three main types of companies to invest: marijuana growers, cannabis-focused biotechs, and companies that provide growing products to the marijuana growers such as hydroponics products and lighting systems.
So, needless to say, you will want to do your research before diving in. Marijuana stock can be a great alternative investment, especially as the popularity grows around the world.
After you’ve done your research and have decided what is right for you, let us look into the steps of investing in cannabis stock.
The first step would be to choose which cannabis company you will be investing in. This is where all of that marijuana research is going to come in handy. You can choose from so many businesses that either directly produce marijuana, biotech companies, or other companies that assist in production in less direct ways.
After determining the company you want to invest in, choose how much money you are willing to invest. Remember, the cannabis sector can be pretty volatile and there are several risks behind this investment. It’s recommended to never invest more than you are willing to lose. If you have done your proper research, you will more than likely earn sufficient returns, nothing is promised.
Now, it’s time to buy the stock, with the help of a broker or advisor, of course.
Alpen Partners Wealth Management International AG, the sister company of Alpen Partners AG, is now a registered investment advisor at the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.
Building on many years of experience in private banking in Switzerland, Alpen Partners Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well known for being sophisticated and discreet.
The advantages of having an account in Switzerland include currency and investment diversification, asset protection, and the possibility to deposit assets in some of the oldest and best-capitalized banks in the world.
No matter the problem, Alpen Partners will handcraft a solution for you. We know that there is no one-size-fits-all when it comes to financial success. Our approach involves working with our clients to make a unique plan to meet their needs. Rest assured that we will work hard to guide you through the process of meeting your financial and personal goals.
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