Dip Your Toes Into the Marijuana Industry With These 3 Stocks in 2019

The marijuana industry had an eye-opening 2018.

To our north, Canada became the first industrialized country in the world, and only the second country overall, to legalize recreational cannabis. Although it’s going to take some time for capacity to ramp up enough to meet demand, the end result is this will translate into billions of dollars in added annual sales for the legal weed industry. Even more so, it brings legitimacy to an industry that was otherwise considered taboo.

Then, in the U.S., a handful of states legalized pot in some capacity, with the U.S. Food and Drug Administration approving the very first cannabis-derived drug.

But in spite of this gained validity, marijuana stocks plummeted. Though they were up modestly by mid-October, a majority of pot stocks had seen declines of 30%, 40%, or more than 50%, by the end of the year. With risks aplenty piling up, the case could be made to avoid pot stocks…

Get a secondhand high with these time-tested businesses

Of course, it’s hard to overlook the industry’s potential. With North American legal weed sales totaling $9.7 billion in 2017, but on pace to reach $47 billion by 2027, according to cannabis research firm ArcView, there are bound to be winners.

So, what should skittish investors do? My suggestion would be to set yourself up for success with time-tested businesses that are only partially reliant on the cannabis industry, yet can still benefit from its rapid growth. There are three such stocks that fit the bill (or should I say “bud?”)…

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