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  • Posted June 15, 2020

Are Hemp/CBD Futures A Good Investment?

Hemp and CBD products are currently seeing an explosive growth on the market right now. This is causing many people to wonder if they should begin investing in hemp and CBD. Is this a trend that is going to stick around? Or is it just a fad that is going to burn out quickly? In truth, only time will tell. However, we can investigate further into the market to improve our predictions.

Current Value

The current CBD market is estimated to be worth 9.3 billion U.S. dollars. To put that in perspective, the U.S. beauty and personal care market was generating approximately 90 billion dollars in 2018. That puts the CBD market as a 10th the size of the entire beauty industry. Why is CBD and hemp so big? On one side, it’s a very popular component of vaping products. In fact, vaping is one of the most popular ways of consuming CBD these days. On the other side, it’s an extremely beneficial substance for skin care. CBD and hemp have even been used to help those with depression and anxiety.

Growing Potential

Although the market is already big, it still has plenty of room to grow. Because of CBD and hemps relation to marijuana, there are many laws that are inhibiting the growth of this industry. It’s important to note that although these substances come from similar plants, they are not the same. You cannot get a high from CBD and hemp. As education about CBD and hemp increases, the industry will grow. A lot of the growing power of hemp is currently focused in a few states. This is expected to change over the next several years with more and more states getting involved in this business.

It’s well assured that CBD is going to keep growing. Many people expect the market to double in the next 10 years. If you are looking for a capital gains investment, then you may want to consider investing in this industry.

Dividends

Capital gains is not the only way to look at an investment. From the capital gains perspective, you only get an increase if you sell the stocks. You should also consider the dividends that companies in this industry are paying. If they are giving high dividends, then you will be getting some quality passive income. If they are not, then this may not be as lucrative as you might hope. You will be relying entirely on capital gains and hoping you picked the right brand.

The future for this industry is bright. But at the end of the day, you need to do your own research before you begin investing. You should have a clear idea of the market trends as well as the driving forces behind these trends.

Want some help planning your investments? Take advantage of our investment planning services so we can help you make the smartest choices for your future.


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