But a host of factors are brewing that could cause a powerful tailwind for the U.S. cannabis industry. Notably, these revenue increases have happened in the industry despite the general economic downturn with states across the country reporting record cannabis sales. While alcohol has long been seen as a recession-proof industry, cannabis only became legal in Colorado and Washington in 2012, so until now there has been no reliable data to show how cannabis sales may fare in a down economy. Investors should pay close attention to management teams and operating fundamentals in deciding where to park their capital. And real reform at the federal level may be on the horizon, which would very likely provide a huge boost in the valuations of American publicly traded cannabis companies.

Source: Forbes July 15, 2020 18:00 UTC