Even in a down economy, high risk investment opportunities abound!

This morning I read about what might be a major new investment opportunity — with opportunities for growth poised to become bigger than Viagra:

There is a noticeable aroma wafting around the medical marijuana industry. It’s the smell of money — with a strong hint of entrepreneurial opportunity.

Medical marijuana is now a $1.7 billion market, according to a report released Wednesday by See Change Strategy, an independent financial analysis firm that specializes in new and unique markets. The figure represents estimated sales of marijuana through dispensaries in states with medical marijuana laws. It is the first time a definitive dollar figure has been given to the emerging medical cannabis industry.

To put that number in perspective, sales of medical marijuana rival annual revenue generated by Viagra, a $1.9 billion business for Pfizer.

Before I would leap into this as an investment opportunity, I would have to carefully weigh the impact of certain unresolved legal issues. 

Rose’s report focused exclusively on the quasi-legal medical marijuana industry in 15 states and the District of Columbia. The cannabis industry as a whole — including the underground black market and medical gray market — generates anywhere from $18 billion to $35.8 billion a year. That is a huge variance and demonstrates the quickly shifting landscape of the industry — and the unreliability of data about an enterprise that is considered strictly illegal by the federal government.

“We undertook this effort because we noticed a dearth of reliable market information about this politically charged business,” Rose said.

Remember, while President Obama said during his campaign that he would defer to the marijuana laws of individual states, that promise appears to be as meaningless of the rest of his promises, for his Justice Department is conducting systematic raids on legal medical marijuana establishments.

Sigh.

I guess M. Simon predicted that. I hate it when his dire predictions come true.

For now I think I should scratch the marijuana investment idea as too risky.

Might be a better idea to invest in the burgeoning Chernobyl tourist industry.

I’m sure Chernobyl is a nice place to visit (a “hot” vacation spot and all….), but would I really want to live there? I mean, if the radiation didn’t get me I’d succumb to death from cold! (27,940 deaths per year is nothing to sneeze at, even if you say “Gesundheit!“)

But that’s just personal stuff, and we’re talking strictly business here. Like, personally, I don’t smoke pot, nor am I especially into radiactive travel destination sites. Which is totally irrelevant.

There is no rule that investing money in something means you have to enjoy the products!


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3 responses to “Even in a down economy, high risk investment opportunities abound!”

  1. Eric Scheie Avatar

    I’m thinking that if the Fukushima situation continues to worsen, Americans diagnosed with terminal cancer but still able-bodied might offer to work as volunteers.

  2. Kathy Kinsley Avatar
    Kathy Kinsley

    Not sure I’d invest in the Chernobyl tours, but I’d dearly love to take one.