Businesses that operate in the cannabis industry make up one of the most rapidly growing segments of the North American economy. 11 billion in 2020. Thanks to the promising revenue stream and rapid expansion across a growing number of states, allied with diversified product offerings and industries, marijuana now provides an attractive opportunity which investors would be foolish to ignore.

Until now, there has been minimal participation by investors in the market for legal cannabis. Is this likely to change in 2018, If so, what do investors need to know before they take the plunge, The Cole Memo, which is a Justice Department guidance issued by the Obama administration, formed a big part of the legal basis of the legal marijuana industry in the country.

Most state legislators used the memo to help craft their respective cannabis regulations to comply with laid out federal guidelines. It therefore came as little surprise that Sessions’ decision, which came a few days after California legalized recreational marijuana, has caused worry among pro-cannabis proponents. However, for a large number of investors already working in the industry, the rescission of the Cole Memo does not change anything.

According to marijuana investor Ryan Ansin, who is the Managing Director of Revolutionary Clinics and head of the Family Office Association, Sessions decision does not alter the state of marijuana laws in the United States. There are few industries within North America that exhibit the kind of growth or consistency evident in the legal marijuana space.

However, it is worth noting that, despite its larger market, the US still trails Canada when it comes to the development of this market segment. There are a number of factors behind this phenomenon which we will explore. Another contributing factor has been the political differences evident when comparing the US government and the Canadian federal administration. In Canada, a majority of parliamentary seats are held by progressives, with most of these left-leaning lawmakers strongly in support of the expansion of both recreational and medical marijuana.

In comparison, the legislative branch of the US government is controlled by Republicans, of whom only 51 percent support the legalization of pot. In addition, Canada taxes legalized recreational cannabis very differently to how the US government does. Canada has set the rates of taxation on weed relatively low, while ensuring provinces take responsibility for front-line regulation of the industry and receive a sizeable portion of the revenue, allowing recreational marijuana to thrive.

Before Sessions made his announcement, all of the major indicators focused on the marijuana industry were not only showing growth; they were constantly posting record numbers from one day to the next. The MJIC North American Marijuana Index rose by 32 points before the announcement and before dropping sharply. However, it quickly rebounded the following day, gaining 28 points and almost wiping out any losses occasioned by the Justice Department memo.

While many experts will rightly point out the significant risk involved in the marijuana trade, it also has the potential for equally high rewards. If there is anything to be learned from history, there are few things Wall Street loves as much as a good risk. Another factor that points to a promising future for marijuana investment in the US is the fact that the growing acceptance of marijuana, for medical and recreational purposes, is fueling an expansion in the industry.

In the five years leading up to 2017, the marijuana industry in the United States has experienced phenomenal growth in revenues due to the enactment of favorable legislation for the growth and distribution of the drug for medicinal use. Furthermore, the cannabis trade has been boosted by the passing of legislation in several states, making the use of marijuana for recreational purposes legal.

The Canadian recreational and medical marijuana market is an interesting one, since it contains a handful of major players who control approximately half of the country’s weed market. These companies include Terra Tech Corp (OTCMKTS:TRTC), Aphria Inc (OTCMKTS:APHQF), Medical Marijuana Inc (OTCMKTS:MJNA), Cannabis Science Inc (OTCMKTS:CBIS) and EVIO Inc (OTCMKTS:EVIO) who each control either a high single-digit percentage, or a mid double-digit percentage share of the marijuana trade. 0.45 at the turn of the year. The price surge has been aided by high turnover during the month, closing at almost 80 million shares traded, its best performance since its inception.