The coronavirus pandemic has spread throughout the world with a ferocity and tenacity that has not been seen in recent history. It has impacted every corner of our existence severely from the mundane to aspects with far-ranging importance. Our lives will be forever altered by this virus and its economic devastation. If one thing is certain is that COVID has completely changed the economic landscape, causing one of the biggest economic crashes in the history of the world. Many businesses will suffer dearly and close their doors for good as this pandemic continues to grip the planet. The impact can be felt across a wide array of businesses, especially those that were ordered to close their doors as they were not considered essential. One industry that was at first ordered to shut its doors, but then deemed essential, shows how much progress we have made as a society to truly view it as medicine. This, of course, is the cannabis industry and this industry is in fact set to potentially strengthen due to coronavirus. What follows is three ways the cannabis industry could get stronger during this pandemic and why investing in it could be risky but rewarding.
More People Turning to Weed
COVID is causing shortages and delays in many medications and therapies that normally patients would have access to. This lack of availability has driven some to try out cannabis for the first time in place of their normal method of relief. The same is true for those who are currently suffering from anxiety or depression during these trying times. As many users turn to weed for the first time they might find it to be as effective if not more than their current methods. This has the potential to lead to a lot more customers and in fact, some dispensaries have seen a significant increase in sales during the start of this pandemic. Some of the larger companies are also starting to record gains across the board and some stock analysts believe that pot stocks will make a massive uptick. This is good news following the tough year of 2019 where many pot stocks were seen falling due to overvaluation and saturation of the market. On top of that, the North American market is opening up with Canada and 11 US states have now made smoking marijuana legal for adult use. Pot stocks are poised to make a massive leap as the cannabis industry takes a firm hold on society in the near future.
Leveling the Playing Field
The popularity of weed has led to a lot of pretenders in the industry. One possible benefit of this pandemic on the pot industry is getting rid of those second rate companies. In quite a literal sense only the strong will make it through this. Those that play it smart and do the right thing will make it to the other end and will likely make a profit doing so. This does not mean that all the bad apples will be taken completely out of the industry and every stock will be a great buy. However, it does mean that with a smaller playing field those that remain are more likely to be successful.
Curbside Pickup and Delivery May Be Here to Stay
It may be possible that other methods for getting your pot from a dispensary may be here to stay. Users have been using delivery services and curbside pickup in the states that allow these types of services at an exponential rate. Some estimates are that these services are up as much as 25%. It shows that not only is there room for growth, but that there is also a customer demand for these services. It is possible that they may stay in place long after the pandemic, which indicates another area of growth in the cannabis industry. This could be another great thing for pot stocks as the industry begins to dominate all aspects of business and new dispensary and marijuana-related businesses emerge to fill those gaps.
How Do All These Impact Investors?
The stock market as a whole took a huge hit due to the coronavirus and many pot stocks dropped in price significantly. Since then we have seen the economy begin to recover and pot stocks are once again on the rise. The industry might be hurting and trying to find its footing now, but that will not be true a year or two from now. In fact, the cannabis industry is poised to take off in the near future as legalization sweeps across North America. This makes it an excellent time to do your research and begin investing in this industry that is positioned to take over the United States by storm. Big things for weed are just around the corner and many people are set to make huge returns in America’s next “Gold Rush” that some have dubbed the “Green Rush.”
