Cannabidiol, more commonly known as CBD, is a natural compound found in the cannabis plant. Unlike THC, it does not have psychoactive effects and won't get you high. When investing in CBD, the first thing to consider is the regulatory environment. Although hemp-derived CBD has some federal protections, there is still no clear guidance from the FDA on how CBD companies can legally market their products.
The best time to invest in a relatively new market is after the initial euphoria has dissipated. This could be the case with investing in CBD stocks. Cresco Labs is one of the top American companies in this sector. Before investing in any CBD stocks, it's important to understand what you're investing in and whether it has potential.
The anticipation of the passage of legislation related to CBD has fueled investor interest in companies involved in this industry. Experienced investors are always looking for excessive returns in specific market sectors, and CBD could be one of them. When deciding whether CBD is worth being part of an investor's portfolio, there are many factors to consider.
