Background

The cannabis sector (MJ) has been of top interest among investors around the world. Canada has become the first G7 country to legalize cannabis for recreational purposes, and others may follow.

The US Hemp Market: Not So Straightforward for Cannabis Companies

As shown in the chart above, the ETFMG Alternative Harvest ETF (MJ) has continued to drift lower. With the United States open to hemp, developments may be in store for companies such as Canopy Growth (WEED), Tilray (TLRY), Cronos Group (CRON), and HEXO (HEXO).

Basically, hemp is just another raw material that can be used to make edibles, animal food, cosmetics, paper products, clothes, canvas, and more—there is nothing novel about it. So why is the United States legalizing hemp just now?

Why the United States is legalizing hemp

As was the case for Canada’s legalization of recreational cannabis, the rationale for legalizing industrial hemp is based on its economic benefits. With investor-funded research and development that won’t trip the regulatory line, hemp could benefit the government in the form of tax, and businesses in the form of wide-margin novel products. What novel products can we get from hemp? Read on to know more.

Latest articles

On September 14, drones attacked Saudi Arabia Aramco's oil-infrastructure. Saudi Arabia's oil production has fallen by 50%.

Apple Arcade (AAPL) is a subscription gaming service that was unveiled at Apple’s annual event last week. The service will launch on September 19.

Cannabis legalization is gaining traction not only in the US but also globally. The third presidential Democratic debate was held on September 12.

Google has agreed to make a one-time settlement of over $945 million euros to the French ministry. The ministry accused Google of evading taxes.

In Q4 2018, legendary investor George Soros sold all his holding in Apple (AAPL). In Q3 2018, Apple represented around 0.2% of his total portfolio.

Jim Chanos, the founder and president of Kynikos Associates, is a long-time short-seller of Tesla stock. Tesla stock has fallen 17.5% in the last year.