The 5 Hidden Risks of Owning Marijuana Stocks

In case you haven’t noticed, marijuana stocks have been practically unstoppable over the past year. Even with a recent pullback, many of the largest pot stocks (i.e., those with market caps in excess of $200 million in market cap) have doubled or tripled in value. Pushing this budding industry higher is a combination of rapidly rising legal weed sales and a dramatic shift in consumer opinion.

In terms of sales, leading cannabis research firm ArcView is estimating a compound annual growth rate of 26% between 2016 and 2021 in North America. If the projection proves accurate, this will push legal pot sales to almost $22 billion, giving investors plenty of reason to be excited about the profits that growers, distributors, and retailers could generate.

A cannabis plant growing in an outdoor farm.

Image source: Getty Images.

As for consumers, polling has consistently shown that a record number of Americans

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