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Mainstream Investment Bank Predicts $50 Billion Cannabis Industry

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Cannabis IndustryAs cannabis becomes more acceptable, and by extension profitable, the mainstream business world is beginning to see that there is significant money to be made off of the plant.

A new report, published by Cowen & Co., predicts that the cannabis industry could generate $50 billion within the next decade, more than eight times its current worth.

“A 24 percent, 10-year revenue compound annual growth rate is hard to find in consumer staples, in particular one with a $50-plus billion end-point,” Cowen said, according to Bloomberg.

This is an important announcement because Cowen & Co. is a well-respected investment bank, based out of New York since 1918. Their endorsement comes at a time when as many as 10 states will have cannabis legislation bills on the ballot in November. Cannabis supporters hope that this will sway a few capitalists over to the pro-cannabis side.

Bloomberg states that Cowen’s analysis is based on the assumption that cannabis will be made legal by the federal government within the timeframe. “Cannabis prohibition has been in place for 80-plus years, but the tides are clearly turning,” an analyst for Bloomberg said. The cannabis industry is currently valued at $6 billion according to the same report.

Merrill Lynch, Bank of America’s investment banking arm, did a similar analysis last year. Its 45-page report relayed mostly positive information about the cannabis industry. The report highlighted the medical benefits of cannabis for numerous conditions, a brief rundown of the current laws in place, public safety concerns and public approval numbers about cannabis.

The one true constant in the world is that if something is profitable enough, big business will be your partner when you are trying to fight for legalization. And while this may not be the ally cannabis supporters were expecting, they may be able to help each other out, and in the long run, both profit from the partnership.

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