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In this week’s podcast we spoke with Stephen Murphy, co-founder of Prohibition Partners, about the growth of the cannabis sector and investor enthusiasm for stocks in the cannabis, hemp and CBD space.

Prohibition Partners is a specialist in the cannabis sector, and has a considerable resource of market intel and expertise when it comes to advising companies breaking into and expanding in the space. It provides companies with original data on the growth of the sector and the fast moving regulatory environment around the world.

Murphy has been heavily involved in the cannabis sector in Europe and further afield, and is the co-founder of Cannabis Europa and European Cannabis Week. On the podcast we look at the pipeline of new companies coming to the London market, London’s role as an investment hub for cannabis and hemp stocks, and the potential further catalysts for the growth in the sector, including the participation of national health authorities.

What are the drivers for expansion and growth of the global cannabis sector?

Two of the key factors affecting the success of cannabis and of cannabis and hemp-based solutions, are going to be consumer take up, and secondly the changing treatment of cannabis by governments and health authorities. Murphy provides us with a very insightful perspective on this.

On the podcast we had a wide ranging discussion about what we here at The Armchair Trader like to call Cannabis 2.0 – the second wave of the cannabis and CBD industry which is seeing more companies coming onto the market, both in North America and in Europe, and the more established players starting to expand their operations further.

The political and regulatory climate also looks positive for cannabis stocks: following the Joe Biden victory in the US election in November, there is widespread expectation that there will be further liberalisation of the regime in the US around the sale of cannabis and CBD produicts. The big growth area at the moment seems to be in the health and wellness space, but as Murphy rightly points out during our discussion, cannabis has a much wider range of positive uses than many investors realise.


Renewed enthusiasm for cannabis investing

The listing of new stocks like Kanabo in the UK is creating renewed enthusiasm for cannabis stocks in the London investment community, and we also touch on the considerable appetite of investors for ETFs that specifically track the performance of leading companies in the sector.

We continue to favour the sector, so will no doubt be returning to cannabis and hemp-based investment opportunities in future episodes. We also encourage investors to get in touch if there are specific cannabis and CBD stocks you would like to have interviewed on the podcast in the future and we will endeavour to get their CEOs on the show to take some questions.

We are trying to keep our podcast on a weekly schedule now. We will be posting future episodes to the site, but readers are also encouraged to subscribe to the podcast via your platform of choice. The podcast is now available on over 30 channels.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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