The correction in cannabis stocks could end at any minute, and today’s bargain prices could disappear right along with it.
There’s big money sloshing around the cannabis industry, and it’s only making the massive marijuana megatrend gain more and more strength.
Last week, I showed you “3 Charts for the Next Boom in Cannabis Stocks.” Today, I have three MORE must-see charts for you …
Trend #1: U.S. Cannabis Employment is Booming
Via MJBizDaily.com, we learn that the U.S. Bureau of Labor Statistics has calculated that the total people employed in the marijuana industry in the U.S. is projected to grow 34% this year.
As sales boom and more states legalize, the industry is expected to add roughly 235,000 full-time jobs between now and 2023. This represents a compound annual growth rate of 22%. And this means the industry will provide 475,000 full-time jobs by the end of 2023. Wow!
This is dwarfing growth in the U.S. energy industry, even though the U.S. oil patch is booming as well. Other professions are left far behind.
Meanwhile, marijuana legalization is helping the economy in other ways. The economic impact of cannabis will give the economy a boost of between $39.2 billion to $48 billion this year. That’s about a 35% increase over last year.
Trend #2: Massive Global Growth
Here’s a chart of past and projected global cannabis sales, from ArcView Research …
That’s a compound annual growth rate of 26%. Phenomenal!
This tells us that A) global growth potential is huge, which is great for companies that can capitalize on this megatrend and B) the current pullback is shorter term.
And finally, let’s look at one of the major forces driving legalization … tax revenue.
Trend #3: Tax Revenue is Booming
This chart from Statista is worth a thousand words …
Last year, Washington had the highest tax revenue, an estimated $319 million. California was a close second with $300 million, and Colorado banked $266 million in cannabis taxes. Talk about ringing the cash register!
In fact, Colorado just announced that it has brought in more than $1 billion in tax revenue since legalizing in 2014. You can bet that makes other states green with envy.
This dangling carrot of more tax money is a primary driver that will continue to push legalization this year and beyond.
And D.C. is finally getting onboard …
Just this week, the House of Representatives cast a 267-to-165 vote approving a bipartisan amendment that protects state-legal cannabis programs from interference by the U.S. Department of Justice.
The amendment is attached to the fiscal year 2020 Commerce-Justice-Science spending bill.
Sure, we’ll have to see if it can pass the Senate. But if and when this becomes law, it will lift another cloud of worry from the U.S. cannabis industry.
And so that means NOW — right now — is a great time to put money to work in the cannabis industry … BEFORE it steps further out of the shadows.
All the best,