Cannabis Stocks Are Growing From 2018: The Year of CBD
Last year was one of the best for cannabis stocks, and 2019 is poised to become even better for them. The cannabis industry is thought of as recreational smokers getting high, but this year will focus on the wellness and healing properties of CBD, due to its growing uses. CBD is short for cannabidiol , which is one of the many compounds found in the cannabis plant. Unlike the better- known THC, CBD does not produce a high feeling. It promotes wellness, pain relief and the easing of symptoms from diseases. It is like a pharmacy in one compound, and is showing promise in treating a myriad of symptoms, including post traumatic stress disorder, schizophrenia and others. It is increasing in popularity as a general health treatment, and people take it for everything from increasing energy to relieving arthritis. It even helps dogs and cats. For these reasons, 2019 will become the year of cannabidiol, and this could mean a good year for cannabis stocks.
Another Big Step Toward Legalizing CBD
The Farm Bill was passed in December of 2018, and industrial hemp became more well known as another form of the cannabis plant. It is a major source of CBD and is legal at the federal level. Hemp farmers now have access to banking services, crop insurance and federal grants for research which were previously unavailable. It is very clear to manufacturers and distributors that it is legal to transport hemp, and hemp products, across state lines. In addition, retailers can now sell CBD without fear of enforcement actions from the government. Hemp and CBD will be worth about $2 billion this year and will be worth as much as $22 billion by 2022, according to cannabis research by the Brightfield Group.
Greg Miller, Director of Cannabis Research at Money Morning, states that 2019 will become known as the year for the boom of CBD. In March, the United Nations is going to de-schedule CBD, whether it is sourced from cannabis or hemp, and CBD products will be approved for use around the world. In 2018, a website for cannabis tracked 915 bills in state legislatures and Congress regarding cannabis, including medicinal cannabis and hemp. There was a forward progression of filed cannabis legislation, with at least 147 bills being signed or enacted in 35 states and the District of Columbia. This year, legislators in state capitols and on Capitol Hill, have filed more than 350 cannabis proposals.
All of these catalysts will combine to create an unprecedented market. Legalization will pave the way for the demands of the public, as well as for the supply companies who have been planning and anticipating for this to happen. Within a few months, CBD will be available in a wider variety of products. People will be able to choose among tinctures, which are currently the most common method of consumption, to energy shots, gummies, nutrition bars, skin moisturizers, and products infused with CBD- containing products such as coffee, honey and beer. These products will become available in everyday stores, as acceptance of cannabis in general, and CBD in particular, continues to grow. With the demand about to increase dramatically, diving into the cannabis market now, before it goes mainstream, is believed to potentially be a great profit opportunity.