Nearly 60 percent of individual investors surveyed in the second Cannabis Investor Survey believe that cannabis will remain a strong growth sector despite increasing concern that a global recession will hit over the next 12-18 months. The survey, conducted by KCSA Strategic Communications, surveyed more than 300 individual cannabis investors to analyze the current market for cannabis stocks after a turbulent summer in the cannabis market.
A large majority of investors see the cannabis industry as a long-term investment and plan to stay in the market for 1-10 years, despite only 40 percent of investors surveyed making money off current cannabis stocks. Many are holding out hope that the proposed Federal bill, the SAFE Banking Act, will open the door for increased cash flow and enable more investors to safely increase their funds in the cannabis sector.
Many investors have reported losing or not gaining money off cannabis stocks since KCSA’s previous investor survey in May, leading many investors to diversify their stock among a number of cannabis companies. Most investors own shares in at least six cannabis companies, with potential increase in investment once legislation provides more of an infrastructure for the cannabis market.
“As an industry, cannabis is gaining momentum more quickly than most anticipated; the challenge remains the current regulatory environment. The capital crunch cannabis companies face today could be addressed with the passage of the STATES Act, SAFE Banking – with a capital markets tweak – or rescheduling,” added Lewis Goldberg, Principal and Managing Partner at KCSA Strategic Communications. “The reality is, both individual and institutional investors are committed to investing in the cannabis market. Nearly everyone understands this is a long term, conversion play, and these companies are committed to turning an historically illicit market into a regulated, taxed industry.”
