In an unstable financial time that might be the dawning of a new recession, there are few certainties when it comes to where to put your money. But CNBC is reporting that “ultra-rich” investors are betting on cannabis in 2019.
It’s not just flower or concentrates that the wealthy are investing in, according to what Michael Sonnenfeldt, founder of investment club Tiger 21, told CNBC’s “Power Lunch.”
“Sometimes it’s owning the land that cannabis is grown on, sometimes it’s owning the real estate where there are factories, if you will, and sometimes it’s owning the companies and then of course there’s the public market,” he said.
The switch in swanky portfolios to the world of weed comes as investors are shying away from more traditional markets: Sonnenfeldt says the rich are taking down their real estate investments down a couple notches.
Other than cannabis, other trends for the New Year in investment include gold and fixed-income investments. That puts weed in the company of safe, boring bets, which is good for business.
The appeal of cannabis investment comes after a banner year for the marijuana market, with both legalization in California and Canada ballooning the recreational sector.
CNBC notes that Canadian weed companies are doing well on the stock market, especially big wig companies like Tilray and Canopy Growth, though both have experienced some peaks and valleys since going public.
So if you want to be big in the weed world, you might want to start cozying up to Wall Street types if you haven’t already. The next generation of cannabis players might have more to fear from the SEC than the DEA.