Stansberry Research has found that coffee and marijuana have been lucrative prospects although they may not seem like obvious ones. Many actually consider coffee to be a rather poor investment option and according to the Commitment of Traders report many investors are steering clear of the commodity.
Coffee was expected to drop in price on 2014, but the price per pound actually rose by 92%. It was even expected that the price would drop again in 2015, but it went up by 50% by the end of the year.
Experts at Stansberry Research point out that inexpensive assets are some of the best, but they do need to be in what is considered to be an uptrend. Coffee can be somewhat controversial but not quite like the sensitive topic of marijuana. Stansberry Research feels that it may be a good opportunity since nine states have already legalized the substance. The number is growing as well and so is the support. Over 60% of Americans are in support of marijuana use.
In fact, many countries all over the world are becoming much more accepting of the substance and Canada is taking the lead of publicly traded marijuana stocks.
There is always a risk when it comes to investing, and it is important to reduce any kind of risk on your portfolio as advised by Stansberry Research. As for commodities such as marijuana and coffee, they are inexpensive and tend to have loyal users, but they can be a pro or a con in the eyes of investors.
Of the two, however, coffee is the lessor of the risk since there just aren’t the legal issues associated with the legality of the substance as there is with marijuana. The draw to marijuana as an investment is that it is likely to have a better return and has minimal risk in a state that considers it to be legal.