The marijuana industry is projected to grow at an annual rate of about 17% until it reaches $55.8 billion a year in 2025. The cannabis market has roughly tracked the SP 500’s expansion in 2019. A popular ETF representing the cannabis market, called Alternative Harvest MJ, is up 13.2% YTD, while the SP has climbed 13.6%.
Marijuana is not yet federally legal in the U.S., although it is many some states and Canada. Cowen estimated in an April 2018 report that the global cannabis industry rested at about $50 billion annually, including black-market channels.
With many 2020 presidential candidates supporting federal legalization, or at least easing of marijuana restrictions, it seems likely that legalization will come within the next few years. If this happens, a large portion