Ever since the legalization of marijuana was sparked by the landmark Colorado vote in 2012, marijuana has become something of a hot stock commodity, despite current antipathy in the current White House administration towards cannabis in general.
Considering this somewhat charged atmosphere, it’s likely that some investors are naturally feeling a bit iffy about whether to put their money towards the growing U.S. marijuana market.
For some, the market potential in the US is large: the projected sales estimate for the marijuana industry is hovering around $18 billion or more by the year 2020.
On the other hand, it might be short-sighted for investors to only focus on the US cannabis markets.
Foreign Markets Beckon
The U.S. isn’t the only country taking steps into the broader realm of de-criminalizing, de-stigmatizing and ultimately legalizing cannabis, though. Mexico and Canada have made medical cannabis legal in both their countries, and Prime Minister Justin Trudeau is pushing pro-recreational cannabis legislation through Parliament, though there has been some pushback.
Still, these are two foreign markets to take a look at, and that’s just North America.
South America’s markets for cannabis are not that large yet, though there might be potential if certain countries within the continent continue de-criminalization efforts. But de-criminalization doesn’t really equate with full legalization, and there has been quite a bit of government upheaval, so investors might want to bide their time while things are sorted out.
Europe, of course, holds some of the largest marijuana markets. The Netherlands and Germany stand out as top choices, though the smaller countries like Croatia, Estonia and the Czech Republic might warrant a look.
First-time foreign investors might, however, want to start out with Canada’s top three companies: Aphria, Aurora Cannabis and Canopy Growth Corporation, as they’re companies whose stock could rise significantly if marijuana is legalized.