With 23 states allowing medical marijuana and 4 allowing recreational use (as well as the District of Columbia), the industry is booming. Not only have direct marijuana sales been so successful as to create an illegal level of tax surplus in the State of Colorado, but ancillary industries in tech, packaging and tourism have seen equally huge growth. Currently there is a wave of investment interest for promising small business and entrepreneurs prepared to take advantage of the growing market.
Granted, this market, like all others, is subject to some downturns. We already saw a major downturn in the marijuana index after a huge bubble erupted immediately after the first legalization in 2013. However, the market has since stabilized, first into a more natural downward curve before leveling off and tipping up again at natural steady growth rate that appears promising going into a long-term future.
That initial boom and bust, combined with the hazy legality has made some of the largest economic interests unwilling to jump in, but this is another advantage for small investors. Without competition from Fortune 500 companies, smaller investors are primed to reap huge profits from this steadily growing industry. While the current legal situation is complicated, we are seeing bipartisan support for federal recognition of states' right to determine their own marijuana laws: senators Gillibrand (D- New York), Booker (D- N.J.) and Paul (R- Kentucky) currently have such a bill in progress. With legality moving in the direction of public opinion and the experiments in Washington and Colorado having been so far successful, the white market in the marijuana industry is almost certainly about to see humongous growth.