The economic fallout from the coronavirus crisis will be massive. With the U.S. already sliding into a recession, experts say it may take years for Americans to recover financially. With the economy in such a state, would it be wise to invest? Wouldn’t it be better to hold onto those funds and see how things play out?
Well, it depends on what you’re investing in. Some stocks, like airline and restaurant stocks, aren’t doing so well right now. A whole lot of industries have been affected by the outbreak, with most of the new unemployment cases concentrated in a certain group of sectors. Cannabis, on the other hand, seems to be holding up.
Most states with legal cannabis programs deemed the cannabis sector essential, meaning cannabis shops and dispensaries could continue operating during the lockdown. Extra measures such as curbside pickups and home deliveries are being approved to make sure their operations remain safe and hygienic. This already gives the cannabis sector an edge over the scores of industries that have been affected by the coronavirus.
However, the fact that cannabis is considered a ‘vice industry’ has made some experts wonder whether it is recession-proof. Historically, vice industries like alcohol have enjoyed increased sales in times of great stress. After most states issued their stay at home orders, cannabis stores reported a spike in demand, with some stating they had lines longer than the ones on the unofficial cannabis holiday 4/20.
The fact that cannabis is medicinal also works in its favor. There are over 200 million registered medical marijuana patients in the country, and with the industry still running, they are still purchasing cannabis. The plant is also a good anti-anxiety drug, and we can agree that this is an extremely stressful time. Both recreational and medical users can use it to help reduce their anxiety and stress.
The coronavirus crisis may even be a blessing in disguise for the cannabis industry. The fact that most states with legal cannabis have deemed it essential has proved that the industry is vital. Hundreds of thousands of employees and millions of patients rely on it, after all. On top of that, it can provide much-needed tax revenue.
The state of Illinois, for instance, has tapped into an emergency relief fund that was funded by cannabis sales taxes to help cushion rural pharmacies during the crisis. This proves just how valuable a legal cannabis market can be, making it an attractive option for investment.
Analysts therefore predict that investors who enter the industry now may reap big in future when the industry players, such as Champignon Brands Inc. (CSE: SHRM) (OTCQB: SHRMF) (FWB: 496), soar even higher in the years to come.
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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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