Weed Week

So your cannabis business is making you a lot of money, now what? Putting it into the bank is worthless. The bank, if they will even take it, pays practically nothing in interest. You could re-invest back into the cannabis industry, but that’d be breaking a cardinal rule of investing - diversity. All your eggs would be in one basket, the cannabis industry. The Dow Jones and S&P 500 just hit intraday records, you could put your money in the market. But another cardinal rule of investing is to buy low and sell high. And many investors think the stock market is ready for a pullback. 

At the end of the day, there are only two asset classes that actually appreciate, and that’s equities (stocks) and real estate. The stock market is tricky business, though. Companies can always issue more stock, diluting the interests of their shareholders. Companies that look like a million bucks today can go out of business tomorrow, leaving you with shares of a worthless company. 

Real estate, however, is different. As Mark Twain once said, “Buy land. They’re not making it anymore.” Unless you think we are in for another once in a lifetime real estate collapse, the real estate market is the best way to make long-terms gains and diversify your investments.