Why Should You Trade Medical Marijuana Stocks?

Juliet D'cruz

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Canada decided to legalize the cultivation, possession, acquisition, and consumption of recreational cannabis in 2018, becoming the second country after Uruguay to do so, becoming the world’s largest legal marijuana marketplace, according to CNBC. After that, many US states and other countries followed suit, intensifying the debate around legalization of the use of medicinal and recreational marijuana, making marijuana one of the hottest topics going – and marijuana investing is no exception!     

One misconception about the marijuana industry is that it is only composed of companies selling recreational cannabis. This couldn’t be more wrong! Firstly, people need to understand that there is more than recreational marijuana, as cannabis-based products can also be used to treat medical conditions or diseases. Secondly, there are more than just companies selling the products – there are a variety of firms involved in the marijuana production chain, such as growers, distributors, and dispensaries, among others.

Let’s focus here on the medical marijuana industry and why it might be a great sector to invest in, both to diversify your portfolio and profit from potentially great returns. If you want to have an idea of the hottest medical marijuana stocks to invest in right now, have a look at this list of the top marijuana stocks to trade in 2021.

Marijuana – An industry with different types of stocks to invest in

There are different kinds of companies involved in the process of producing, as well as selling marijuana, which means that you can choose how you want to be involved in this sector. You can invest in pure-players (those producing marijuana), but you can also invest in companies like researchers, retailers, pharmaceuticals, bio-techs, packaging makers, facilities developers, etc.

Medical Marijuana – An alternative way to heal 

Medical marijuana is a trendy industry, as it profits from an increased interest in holistic healing. Considered to be alternative medicine, holistic healing tries to understand and address the causes of today’s most known wellness issues, by not only focusing on the body but also on the mind and soul. Different research has shown that cannabis can be a great help in dealing with pain, sleep disorders, as well as nausea, for instance. According to the Harvard Health Blog, marijuana is also said to be a “fantastic muscle relaxant”.

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Marijuana – A relatively new industry with potential great returns

With more and more legalization, the cannabis market is maturing, but it is still a relatively new market. With each wave of legalization, stocks related to this market are taking advantage of increased popularity from investors interested in taking part in this sector. With more US states and countries allowing the use of medicinal cannabis (and potentially recreational marijuana), this industry has the potential to grow, with more companies creating products and solutions to meet increased demand.


Medicinal marijuana stocks are great opportunities for you as an investor, as marijuana is a growing industry, with more and more countries and US states allowing its use – not to mention that medicinal marijuana is increasingly popular among those looking for alternative medicine methods. Finally, the sector allows investors to invest in pure players, as well as other types of companies, like biotech’s. 

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