A new survey of the marijuana investment community shows that, despite the current downturn in the market, investors are on track to reach their financial objectives.
On Wednesday (October 30), ManifestSeven issued a report on the future of investing for cannabis plays in the public markets.
Sturges Karban, director and CEO of ManifestSeven, said in the report he wasn’t surprised to see the breadth of support for the industry, but was shocked by how confident investors are right now.
“Investors are seeing the industry’s first major market correction,” said Karban. “And yet, 71 percent of retail investors in the U.S. and 73 percent in Canada say they expect investment in the cannabis industry to significantly grow over the next 12 months.”
Despite the challenges — from market corrections and valuation realignments for public companies — Karban said investors should see this time period as a window of opportunity.
According to the report, which is based on anecdotal information, the majority of investors in the US and Canada believe in the strategy of holding a diverse portfolio of cannabis companies.
The study was conducted by way of consultations with 660 retail investors in the US and Canada, each with a minimum of US$250,000 of investable assets.
ManifestSeven is a California-based cannabis platform for retail distribution with legal players.
The report indicates that there remains a large section of investors looking to enter into the space.
“I think they don’t feel like they know enough to necessarily judge how good an investment is,” Elaine Carey, managing director and co-head of FTI Consulting’s cannabis practice, said as part of the report.
“We have some fairly serious investors coming to us saying, ‘Can you help us understand if this is a good investment?’ — people who, in other fields, would feel pretty comfortable.”
ManifestSeven’s study shows that investors strongly believe their financial goals are going to be met thanks to cannabis investments.
The report’s data indicates that over 80 percent of investor respondents in the US and Canada who already have invested claim to be “completely on track” to meet their financial goals.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.