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Reasons why you have to start investing in CBD Oil

What is CBD Oil?

CBD Oil is derived from the cannabis plant. This natural herb is taking the health and wellness world by storm. Studies have proven CBD oil can help reduce the risks of developing chronic illnesses and provide pain relief. CBD is short for cannabidiol, one of the chemical compounds found in hemp and marijuana. CBD is often confused with THC, the psychoactive component of the marijuana plant. Unlike THC, the use of CBD oil does not produce a feeling of euphoria or a feeling of being “high”.

How is CBD Oil Used?

There is a movement happened in the plant-based wellness market and CBD oil is right in step with movement. Health conscious and health curious folks are looking for natural ways to address health and wellness. Those who seek out natural alternatives find that there is healing power in plants and the marijuana and hemp plants are no exception.

CBD oil is believed to relieve pain, reduce anxiety, alleviate cancer and help with acne and other minor skin issues. CBD extracts are gaining popularity and are being used as an ingredient in several products such as topicals, oils and edibles. These products typically sell at a higher price point than the traditional dried marijuana flower.

The sale of CBD based products are now well beyond just sales at local marijuana dispensaries. Today, there are chefs are seizing on the CBD food trend and are specializing in the preparation of CBD infused foods. There is also an emerging cannabis beverage market, which is expected to experience exponential growth by the year 2024.

Is CBD Oil Legal?

The federal governments recognize marijuana and hemp as two forms of the Cannabis plant. Hemp is processed the least and contains high levels of CBD and low levels of THC. Alternatively, marijuana is cultivated to contain elevated levels of THC, sometimes with levels reaching as high as 30%. In 2018 CBD oil was legalized through the Agriculture Improvement Act. As outlined in Th Agriculture Improvement Act, CBD oil that is extracted from the hemp plant must not contain more than 0.3% THC. Products containing CBD are also legal under the Farm Bill, which addressed the classification of hemp from a controlled substance. While the medicinal and recreational use of marijuana is legal in some states, the plant remains illegal under the Federal Controlled Substances Act and continues to be classified as a Schedule I drug.

With the recent acknowledgment of the benefits of CBD oil, there have been opportunities to invest in the market. Although CBD based products are hot, there are some investors who have avoided investing in CBD oil because they are against the idea of marijuana for recreational use. As more people become aware of the distinction between marijuana and CBD, there will be an increased interest in investing in the market.

Is it Safe to Invest in the CBD Oil Market?

CBD oil is a niche trend within the cannabis industry with growth that is expected to go far beyond the broad-based marijuana industry. CBD oil can be extracted from the cannabis plant and is abundant in hemp plants. Growing hemp costs a lot less to grow than cannabis, this could have a positive impact on the performance of CBD based stocks.

While there is no way to guarantee the performance of a stock, you can look at the growth of the market in the recent past and by all accounts, the CBD and marijuana companies are growing. As a rule, investors should not invest more than they can reasonable stand to lose. Stocks are unpredictable and volatile.

In addition to the demand in the medical market for CBD oil, there is an increase in recreational marijuana users switching to CBD oils. Also, as more states legalize the use of cannabis for recreational purposes, the demand for the plant will likely continue to rise. These are all good signs that investments in CBD oil stocks may be a safe bet. Potential investors should consider starting small to measure their appetite for investing in the market.

Work with a Broker You Trust

In a new industry, it is not easy to pick winning stocks. Once an investor has connected with a broker, they can begin investing in CBD stock. The CBD and marijuana markets can be complex, and it is best to select a broker who has experience with CBD stock investments.

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About the Author: Praveen Unnikrishnan

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