Infographic: Comparing THC vs. CBD - What's the Difference?
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Comparing THC vs. CBD: What’s the Difference?

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The business of legal cannabis is rapidly growing on both medicinal and recreational fronts. In fact, last year legal cannabis sales soared in the United States to $5.4 billion, a 17.4% increase.

However, cannabis itself is a fairly perplexing substance. It has close to 500 active compounds, and at least 113 of these belong to a family of diverse chemical compounds called cannabinoids.

Of this group, the two most common and researched compounds are THC and CBD – but they are vastly different. As new strains and product offerings become available in the legal cannabis sector, it is more important than ever before for investors to understand the difference between these two compounds.

Comparing THC vs. CBD: What’s the Difference?

The following infographic comes to us from food sciences company Lexaria Bioscience (OTCQB:LXRP) (CSE:LXX) and it shows the key differences between THC and CBD. It provides fundamental knowledge for investors, patients, and regulators that want to better understand this quickly growing sector of business.

THC-vs-CBD-7-(no-outline)-1

In the comparison of THC vs. CBD, it’s clear that the two compounds are vastly different. While they both interact with receptors in the body, they produce different effects.

To start, THC, or tetrahydrocannabinol, is a psychoactive compound while CBD, or cannabidiol, does not affect the mind in the same capacity.

THC has the following effects on a user:

  • Analgesic: Relieves pain and inflammation
  • Relaxing: Creates sense of relaxation and well-being
  • Drowsiness: Induces sleep
  • Euphoria: Creates “high”
  • Appetite Stimulant: Creates urge to eat

While CBD’s medicinal effects are making CBD-heavy strains a popular choice for patients:

  • Anti-inflammatory: Combats inflammation and pain
  • Anticonvulsant: Suppresses seizure activity
  • Antiemetic: Reduces nausea and vomiting
  • Antipsychotic: Combats psychosis
  • Anti-oxidant: Combats neurodegenerative diseases
  • Anti-depressant: Combats anxiety and depression
  • Anti-tumoral: Combats tumor and cancer cells
  • Neuro-protective: May protect neurons in the brain

As a result of these effects, THC is typically used to treat pain, nausea, sleep apnea, or stress disorders, as well as to combat the symptoms or side effects of chemotherapy, multiple sclerosis, glaucoma, AIDS, or spinal injuries.

CBD, on the other hand, is being used to treat inflammation, stress, depression and anxiety, while also being used to combat cancer, epilepsy, schizophrenia, multiple sclerosis, migraines, arthritis, and the side effects of cancer treatments.

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The Top Google Searches Related to Investing in 2022

What was on investors’ minds in 2022? Discover the top Google searches and how the dominant trends played out in portfolios.

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Trend lines showing when the top Google searches related to investing reached peak popularity over the course of 2022.
The following content is sponsored by New York Life Investments

The Top Google Searches Related to Investing in 2022

It was a turbulent year for the markets in 2022, with geopolitical conflict, rising prices, and the labor market playing key roles. Which stories captured investors’ attention the most? 

This infographic from New York Life Investments outlines the top Google searches related to investing in 2022, and offers a closer look at some of the trends.

Top Google Searches: Year in Review

We picked some of the top economic and investing stories that saw peak search interest in the U.S. each month, according to Google Trends.

Month of Peak InterestSearch Term
JanuaryGreat Resignation
FebruaryRussian Stock Market
MarchOil Price
April Housing Bubble
MayValue Investing
JuneBitcoin
JulyRecession
AugustInflation
SeptemberUS Dollar
OctoberOPEC
NovemberLayoffs
DecemberInterest Rate Forecast

Data based on exact searches in the U.S. from December 26, 2021 to December 18, 2022.

Let’s look at each quarter in more detail, to see how these top Google searches were related to activity in the economy and investors’ portfolios.

Q1 2022

The start of the year was marked by U.S. workers quitting their jobs in record numbers, and the effects of the Russia-Ukraine war. For instance, the price of crude oil skyrocketed after the war caused supply uncertainties. Early March’s peak of $125 per barrel was a 13-year high.

DateClosing Price of WTI Crude Oil
(USD/Barrel)
January 2, 2022$76
March 3, 2022$125
December 29, 2022$80

While crude oil lost nearly all its gains by year-end, the energy sector in general performed well. In fact, the S&P 500 Energy Index gained 57% over the year compared to the S&P 500’s 19% loss.

Q2 2022

The second quarter of 2022 saw abnormal house price growth, renewed interest in value investing, and a bitcoin crash. In particular, value investing performed much better than growth investing over the course of the year.

IndexPrice Return in 2022
S&P 500 Value Index-7.4%
S&P 500 Growth Index-30.1%

Value stocks have typically outperformed during periods of rising rates, and 2022 was no exception.

Q3 2022

The third quarter was defined by worries about a recession and inflation, along with interest in the rising U.S. dollar. In fact, the U.S. dollar gained against nearly every major currency.

Currency USD Appreciation Against Currency
(Dec 31 2020-Sep 30 2022)
Japanese Yen40.1%
Chinese Yuan9.2%
Euro25.1%
Canadian Dollar7.2%
British Pound22.0%
Australian Dollar18.1%

Higher interest rates made the U.S. dollar more attractive to investors, since it meant they would get a higher return on their fixed income investments.

Q4 2022

The end of the year was dominated by OPEC cutting oil production, high layoffs in the tech sector, and curiosity about the future of interest rates. The Federal Reserve’s December 2022 economic projections offer clues about the trajectory of the policy rate.

 202320242025Longer Run
Minimum Projection4.9%3.1%2.4%2.3%
Median Projection5.1%4.1%3.1%2.5%
Maximum Projection5.6%5.6%5.6%3.3%

The Federal Reserve expects interest rates to peak in 2023, with rates to remain elevated above pre-pandemic levels for the foreseeable future.

The Top Google Searches to Come

After a year of volatility across asset classes, economic uncertainty remains. Which themes will become investors’ top Google searches in 2023?

Find out how New York Life Investments can help you make sense of market trends.

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