CHARLOTTE, N.C., June 14, 2021 /PRNewswire/ -- With support for cannabis legalization at an all-time high in the U.S., it shouldn't come as a surprise that more people are investing in cannabis-related stocks. The latest MagnifyMoney survey of more than 1,200 investors found 43% currently invest in the cannabis industry.

And given the majority of those investors got involved in 2020 or 2021, it's not unreasonable to imagine more investors joining them soon.

Key Findings:

• Cannabis-related investments are becoming widespread. 43% of investors currently hold at least one cannabis-related stock, whether it's an individual stock, mutual fund or exchange-traded fund (ETF). 
• Most cannabis investors recently put money in a related stock or fund. More than a third (34%) said they did in the past week, with an additional 33% in the last month. Separately, 60% expect to invest more money in cannabis in the next six months. 
• Cannabis consumers are more likely to invest in those stocks. 65% of investors who use cannabis invest in related stocks, while only 16% of investors who don't use cannabis invest in the industry.
• Those not investing in cannabis may be more willing to do so should its consumption become legal at the federal level. 53% of those not investing in cannabis said they'd consider doing so at that point. 
• More people expect to get rich off cannabis investments than those who think they'll get rich by investing in cryptocurrency. 75% of cannabis investors said they believe they'll get rich because of those investments, compared with 62% of crypto investors who said the same about related investments. 
• Cannabis investors aren't in it for the short term, but they also don't expect to hold their investments forever. Most cannabis investors expect to hold on to their current cannabis investments for one to three years (48%) or four to six years (26%). Just 8% expect to do so for 10-plus years. 

The end of federal cannabis prohibition could spur a new wave of cannabis investors. Under federal law, cannabis possession for medical or recreational use is still strictly prohibited. That doesn't mean you'll be arrested for investing in cannabis stocks, but the growth of the overall cannabis market continues to meet obstacles due to prohibition, even as it's legalized in various states across the U.S.

Perhaps due to an understanding of those hurdles, 53% of those currently not invested in cannabis stocks would consider investing if the plant became federally legal. 

"Legalization could lead to a larger market as more people use cannabis and research leads to more use cases," LendingTree Chief Economist Tendayi Kapfidze says. "Previously, investment in this space meant engaging in illegal activity at significant personal risk."

To view the full report, visit: https://www.magnifymoney.com/blog/news/cannabis-related-stocks-survey/.

Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,233 U.S. consumers with an investment account from May 3-6, 2021. The survey was administered using a non-probability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control.

We defined generations as the following ages in 2021:

• Generation Z: 18 to 24
• Millennial: 25 to 40
• Generation X: 41 to 55
• Baby boomer: 56 to 75

While the survey also included consumers from the silent generation (defined as those 76 and older), the sample size was too small to include findings related to that group in the generational breakdowns.

About MagnifyMoney

MagnifyMoney.com, a subsidiary of LendingTree, makes it easy for consumers to shop for the best financial products and get answers to their most important financial questions. MagnifyMoney's unbiased advice and comprehensive product database helps millions of people compare credit cards, loans, checking accounts and savings accounts. MagnifyMoney's newsroom of personal finance experts is dedicated to helping people save money and lead financially healthier lives through strategies and tips for avoiding fees, getting out of debt, paying off student loans, avoiding consumer scams and other financial topics. MagnifyMoney was launched in 2014, was acquired by LendingTree in 2017, and is based in New York, NY. For more information, please visit www.magnifymoney.com.

Media Contact:
Nancy Jones
[email protected] 

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SOURCE MagnifyMoney.com