States across the U.S. have begun to legalize marijuana. Canada has legalized it across the entire nation. New reports from Wall Street analysts have claimed that the market for marijuana is more successful than previously anticipated.
But could it all go up in smoke?
Vivien Azer, one of the only marijuana analysts in Wall Street, has almost tripled her initial price forecast for Tilray, a Canadian marijuana producer. The original estimate of $62 has risen over a hundred dollars to land at a cozy $172.
Tilray shares have increased by over 650% since July. This came after their company received a deal with the United States that allows marijuana imports for medical research.
So far, medical marijuana has been legalized in some areas in order to ease the symptoms of chronic conditions and side effects from drugs. This can range anywhere from cancer to anxiety to Crohn’s disease.
Marijuana can even help improve your sex drive, according to a new research study published by the Journal of Sexual Medicine.
In a study of over 28,000 women and nearly 23,000 men, pot users had sex more often compared to those who didn’t use marijuana.
Consumption of small quantities [of marijuana] prior to sex may increase libido in female patients, which in turn can release positive endorphins and increase vaginal lubrication,” claims Dr. Monica Grover.
This could be especially beneficial to the countless women suffering from menopause. There are around 35 symptoms relating to menopause including hair loss, weight gain, menstrual changes, and — of course — a loss of libido.
Marijuana shares have grown, countless startups are gaining traction, and even celebrities like Jimmy Buffet are moving into marijuana territory and trying to profit from the market’s highs.
However, some financial advisors think the market could burst.
It’s a high-risk situation for investors and startups alike. The more money you earn, the more money can be lost.
Additionally, the cannabis industry may face pushback from the alcohol industry.
A study by economists Keaton Miller and Boyoung Seo discovered a 12% decrease in alcohol sales after marijuana was legalized in Washington state back in 2014. Similar numbers were found in other locations where the average monthly alcohol sales have decreased by around 12.4%.
Regardless, there is back and forth on the relationship between alcohol and marijuana. The real problem lies within the federal regulation of recreational pot.
Right now, federal and state regulation regarding marijuana is at odds in the United States. In 2016 alone, over 1,572,500 arrests were made because of drug law violations across the country.
As the marijuana market grows, no one knows how it will ultimately affect the alcohol industry and federal regulations. Despite the risk, the market is thriving and it shows no sign of slowing down in the near future.