Can Marijuana Stocks Be Considered for the Longer Term? – Profit Confidential

iStock.com/wildpixel Are Pot Stocks a Good Long-Term Investment?

When it comes to identifying the best marijuana stocks, I’ve always held to the belief that long-term investments are the way to go.

While there is a vast potential to make strong gains in shorter-term plays, I believe that the safest and surest bet in the marijuana stock market is the long game.

Before we delve into the specifics, I’d like to lay out what I believe separates a long-term marijuana stock play from a short-term one.

For me, the best long-term marijuana stocks are those that take an international approach.

You see, the reason for the correction in the legal marijuana industry that we’ve experienced in 2018 has to do with overvaluation.

With so much hype and interest surrounding the industry, investors were eager to pour in capital. That led to huge surges in stock prices at the end of 2017.

The result is that you had an emergent industry with many companies hosting huge market caps, despite the numbers not quite evening out.

The perfect example is the comparison of the top Canada pot stocks’ market caps versus how much the Canadian market is likely to support when that country legalizes recreational marijuana.

Much of the industry hype has been spurred on by the upcoming Canadian marijuana legalization. But that’s a myopic strategy.

While Canada will open the door to a huge new market, it will not sustain the industry long-term. That’s why the companies that have begun expanding internationally while also maintaining a strong presence in Canada are the best long-term marijuana stocks.

Consider that a country like Germany has well over double the population of Canada and—should Germany legalize recreational marijuana—it would instantly become the largest legal market for the drug.

While the future of U.S. marijuana legalization

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