3 Cannabis REITs to Buy Now as US Legalization Momentum Builds
The cannabis REIT sector continues to attract attention from income-focused investors this week. The US cannabis industry generated nearly $36 billion in legal sales in 2024. Furthermore, analysts project growth to exceed $70 billion by 2030. This expansion creates significant demand for cultivation and retail facilities. Consequently, cannabis REITs provide operators with capital while offering investors reliable income streams. Recently, federal rescheduling news has fueled optimism across the sector. The Department of Health and Human Services recommended moving cannabis to Schedule III. This shift would reduce taxes for operators and improve profitability. As a result, tenant strength may increase, enhancing REIT stability. Therefore, investors are closely monitoring these developments when evaluating opportunities.
At the same time, technical analysis plays a key role in trading cannabis REITs. Many shares are testing important support and resistance levels. For example, investors watch moving averages and volume trends to confirm breakouts. However, the sector remains volatile and sensitive to political headlines. Thus, proper risk management is essential for navigating this market. Traders should use stop losses and limit position sizes to manage exposure. Moreover, long-term investors must diversify holdings to reduce concentration risk. Careful entry points, based on chart analysis, can improve potential returns. In conclusion, combining technical discipline with risk management is critical. These strategies help investors capture growth while protecting against downside risks this week.
