Cannabis stocks have experienced a flameout that many investors saw coming. However, the casual trader may have been surprised by the massive losses they experienced in recent weeks.
If you are concerned about how you will protect your money, you can use the five tips listed below to diversify. Plus, you might even stay in the cannabis market because you expect long-term gains.
1. Switch To Clean Energy Stocks
Clean energy penny stocks are a good place to start if you would like to diversify. You can invest in cheap energy stocks that should grow over time.
Clean energy has become a hot-button issue in the industry, and clean energy companies are popping up every year to build solar panels, wind turbines, or geothermal systems.
You might choose companies like First Solar or Pattern Energy Group if you are ready to diversify.
Plus, it helps to talk to your broker about companies they like. If you find a cheap stock from a company that just started, you may want to help them raise the funds they need.
2. Invest In Gold And Silver
You can invest in the price of gold or silver, gold bars, collectible coins, or you could try gold stocks like Barrick Gold and Newmont Mining. There are several options available to you.
If you want to be as diverse as possible, you can choose more gold stocks that might be of interest to you. Gold and silver allow you to diversify quickly.
It allows you to invest in an historically strong product. Gold and silver are always in demand because they give jewelry with the raw materials they need.
The companies that mine gold and silver must continue to produce for their customers, and gold bars give you a status symbol/investment.
If you want to start collecting coins instead of investing in stocks, you can build a collection that is displayed in your home. You can trade coins with other collectors, or you could buy coins at trade shows.
Decide how much money you would like to invest in gold or silver with the help from your broker.
3. Invest In Established Technology Firms
You can move your money to established technology companies like IBM, Amazon, Oracle, Facebook, and Alphabet because they have retained their value over time.
A company like Oracle has been a stock market behemoth for decades. IBM has been popular for so long that they made the first computers for the space program.
You might pay a little more money, but you can be sure that your money is safe.
If you want to find more technology companies to invest in, you may turn to companies that manage social media platforms like Twitter or Facebook.
Social media dominates the online landscape, and investing in companies like this helps you protect your investments over time.
4. Diversify In The Cannabis Market
You could still invest in cannabis stocks because the overall trajectory of the industry is good. You may not want to give upon cannabis because it is a product and industry you believe in.
More states are legalizing cannabis every year, and cannabis companies will continue to appear over time. You might choose companies such as Cronos Group and Aurora Cannabis because you want to stay with popular and reliable stocks.
If you are planning on diversifying your investments in the cannabis market, you could move your money to the companies that survived the cannabis flameout.
Ask your broker which companies he thinks would be most profitable, or maybe move to penny stocks that will help you buy for less money.
5. Invest In Foreign Bonds
Foreign bonds are a safe investment because you buy the bonds for a low price.
The foreign government that offers the bond will use that money for investments, and the bond matures after that government collects taxes on the development program.
You are paid a dividend when the bond matures, and you can make money from bonds every year if you stagger your investments.
You could use the Vanguard International Bond Fund to invest in foreign bonds without doing all the research by yourself.
You may feel more comfortable investing with a bond fund, or you could buy direct from a country like Brazil. Countries such as Brazil and China are completing massive development projects every year, and you can be sure that the bonds will pay you back handsomely.
The cannabis stock flameout might have frightened you because you lost a lot of money quickly. You can move your money to foreign bonds, technology stocks, clean energy stocks, gold, silver, or new cannabis investments.
When you diversify your portfolio, you can protect your money from future crashes. Also, you can pinpoint on the popular cannabis companies that will keep their value moving forward.