Founder and CEO of Mlnyanville, a leading Internet-based financial media firm, Todd Harrison thinks that marijuana seeds are going to be the number one investment idea for the next decade. But, the common public wants to know that even though they have seen recreational use of marijuana take off to a flying start in Colorado this year, how weed can potentially be an investment option for them.
Harrison believes that the driving force behind the same would be widespread legalization of cannabis, which is inspired by state’s need for tax generation. He points towards the rising expectation that legal cannabis is expected for produce $134 million in tax revenue for the coming fiscal in Colorado, which recently became the first state in U.S. to legalize recreational use of cannabis seeds in 2014, and it has already generated $1.1M+ in state taxes during the month of January alone.
As surprising as it may sound, it is possible for many potential reasons; for Harrison says Colorado is the litmus test for widespread legalization of cannabis. He also believes that legalization would substantially reduce the number of marijuana related crimes and prison population as powerful incentives for decriminalization of marijuana.
As per one of the reports from the New York Times, half of the states in United States along with some of the conservative states in South as well are looking into decriminalization cannabis or legalize it for both recreational and medical purposes. Two states that are most likely to legalize cannabis next year are Alaska and Oregon. Twenty states today allow the use of medical marijuana, while Washington and Colorado have legalized it for recreational purposes.
Arcview Group, one of the cannabis investment and research firms, recently published a report as per which the market of legal cannabis is likely to grow as much as 64% to reach $2.34 billion in year 2014 from the existing $1.44 billion.
Harrison stated that presently Wall Street does not cover cannabis market as an industry but after legalization is more mainstream it will be a reflection point when marijuana would reach the center of everything.
At present, most of the talks are focused on penny stocks in marijuana market, but these are not what Harrison has been talking about. In fact, he strongly suggests that these stocks are quite risky and not to mention volatile; for the same reason he personally doesn’t touch them.
But, there are some real firms that are showing big interests in cannabis market. One of the perfect examples is GW Pharmaceuticals, which is a cannabinoid prescription medicine company.