Cannabis Investment Trends for 2020
Cannabis is going through growing pains as an industry. Inhibited by its legal status in the US, and struggling to stabilize its supply and distribution chain into reasonable bounds, there are impediments to its immediate profitability. With that said, we believe the general prognosis is still favorable. The industry’s relative immaturity means that evolution is inevitable and desirable, as it will help establish industry leaders. We believe that the Cannabis Growth Fund is well positioned as an actively-managed mutual fund to turn its focus onto leading companies that are making the decisions that, in our view, will lead to long-term potential growth. With that in mind, we have made some predictions about cannabis investment trends for 2020.
What’s Hot in the Industry
Trends That We Believe Will Transform the Cannabis and CBD Industry
- New Hampshire
- New Jersey
- New York
- Rhode Island
- Vermont (which has already legalized possession and home cultivation)
The industry is talking a lot about ‘Cannabis 2.0’, the unofficial name given for the debut of Canada’s new legalization guidance on recreational consumption of edibles, concentrates, and topicals containing cannabis. CGF believes that 2.0’s rollout will impact the overall growth of many of Canada’s major licensed producers. The new products they will be introducing are expected to offer much higher margins and could be a significant boon to company’s future earnings. It is possible, however, that the general backlash against vaping products will negatively impact cannabis companies. South of the Canadian border, eyes are on the Secure and Fair Enforcement (SAFE) Banking Act, which passed the House of Representatives on a strongly bipartisan vote in September 2019 and awaits passage by the Senate and the White House. If successful, it would offer much-needed legal protections to financial institutions that provide financial services to cannabis businesses. The Federal Reserve would be called off from threatening institutions that deal with the cannabis industry. Even if the bill is sat on or dismissed by the Senate, the fact that the House approved it is a watershed moment in the cannabis industry’s maturation.
Cannabis Growth Funds
OF SPECIAL NOTE
Statements, estimates and forecasts are subject to significant legal, business, economic, and competitive uncertainties, including competition, limited access to bank services, litigation, enforcement actions, and the receipt of government authorizations. This includes differences in, among other things, laws, regulations and guidelines relating to the manufacture, transportation, and storage of cannabis, and the conduct of operations, which vary among the U.S. federal government, various states, and foreign jurisdictions. There can no assurance that such estimates and/or forecasts will be realized, and these are not indicative of future investment performance. Historical data is not indicative of future performance.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained from 888.885.0588. Please read the prospectus carefully before you invest.
Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more developed countries. Investments made in small, mid-capitalization and micro-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Purchasing and writing put and call options entails greater than ordinary investment risks. Options ownership involves the payment of premiums, which may negatively impact Fund performance. Please see the prospectus for details of these and other risks. Distributed by IMST Distributors, LLC.