Why Cannabis Investing Makes Sense for Your Portfolio
Weed stocks, let’s smoke a joint and just buy one that sounds dope…am I right?
WRONG.
While cannabis stock investing can be very profitable for you…and give you the “green envy” of your friends….it’s also a nascent industry that is rife with undisciplined companies, bad management, and a legal and regulatory framework that will challenge your ability to stay sane.
So WHY DOES CANNABIS INVESTING MAKE SENSE FOR YOUR PORTFOLIO?
The cannabis market is a very new industry that is getting stronger, consolidating, and has an incredible amount of growth potential.
In 2014, the cannabis stock market consisted of mostly shit.
See this Benzinga article on “14 Cannabis Stocks to Watch in 2014.”
Take Medbox as an example. When this article was written in 2014, this was one of the biggest cannabis stocks with a market cap over $1 billion. They claimed to sell automatic dispensing machines for cannabis. (i.e. cannabis vending machines)
But it was all a lie…
Less than 3 years later, in 2017, the SEC charged Medbox and their founder in an illegal stock scam ( see article ). They falsified earnings and did illegal stock sales.
Medbox at one point traded for over $200 / share! Now it doesn’t exist.
The only ones left from that horrendous Benzinga list above are:
TerraTech is now struggling, while GW Pharma is largely stagnant.
Here’s another Seeking Alpha article in 2013 that lists “5 Marijuana Stocks that Are Going Crazy!”
The only issue…the 5 stocks mentioned in this article all went bankrupt and are non-existent now.
Both of these stock lists above (Seeking Alpha + Benzinga) consisted of awful stocks, led by terrible management, that tried to defraud, lie, and cheat their way to profit.
Sadly, this has not been an uncommon occurrence in the nascent stages of the cannabis stock market.
Flash forward to 2019, and my friend Alan Brochstein (who’s been covering cannabis stocks since 2013) writes in Forbes about the “ Cannabis Stock Graveyard “ that he’s seen over the past 6–7 years.
He describes an entire generation of cannabis stocks with disastrous outcomes. Years of companies that over promised, under-delivered, and sometimes committed outright fraud.
Other examples, (including Massroots, Growlife, and CannLabs ) were investor darlings for a while before allegations of corporate fraud, mismanagement, stock price manipulation, and other issues crushed them all.
Now, you must be thinking…WHY WOULD I WANT TO INVEST IN THIS FUCKED UP INDUSTRY?
Simply, it’s gotten WAY WAY better in the last 2 years.
Gone are the overhyped valuations in Canada that led to so many underachieving companies.
Gone are the expectations of rollbacks on legalization across the US and the world at large.
Gone are the devastating stock price declines of 2018 and 2019 that decimated many cannabis companies.
In place of all those, is an industry that was FINALLY treated as an “essential good” during COVID. An industry with MULTIPLE PASSED BILLS ready to roll in the US Senate. An industry also with more consolidation, stronger leaders, and with more robust and scalable business models than ever before.
I’m confident that the biggest issues for the cannabis industry are falling by the wayside. Slowly, but surely confidence across the industry is going up. Businesses are stronger than ever.
And what will come will be the greatest expansion of cannabis in recorded history.
What will come will be a cannabis stock market rise that will make alcohol companies shake in their boots.
What will come is a legal state of cannabis that puts it on par legally not only with alcohol, but with the massive prescription drug market.
BUT….There’s always a but…
But what about crazy COVID or the insanity of the upcoming 2020 election you say?
How will cannabis overcome the seemingly never-ending pandemic and the potential for the most contested election in modern US history?
And if we have a real recession in the near future, is cannabis really RECESSION-PROOF?
The good thing is, these questions have answers.
- COVID was a net positive for US cannabis. After being deemed an “essential business”, cannabis companies have seen product sales dramatically increase as more people stay at home to enjoy their cannabis and spend less on going out and drinking alcohol.
- The 2020 election will be a net positive regardless of the outcome for cannabis. If Trump wins, cannabis will be a major job creator in his 2nd term that he will want to support. If Biden wins, the nationwide legalization (or decriminalization) of cannabis will start.
- Unfortunately, cannabis is NOT RECESSION-PROOF. However, it is a product that will continue to thrive even without a strong economy. Similar to low-cost beer and wine, low-cost cannabis will shine during a recession. So while cannabis outcomes may not be evenly distributed in a recession, cannabis as a whole will thrive and survive any future recession.
I can sense it now, you’re ready to add cannabis to your portfolio.
Your questions, answered.
Your concerns, alleviated.
Your cannabis investing dreams… are now within your reach.
Lean into this moment, this time, this opportunity, to invest in the cannabis industry and secure your financial future.
Don’t waste a moment, set up an account, do your research, and BUY TODAY!
If you’d like my exclusive insider tips, stay tuned for next week!
Good luck!
Originally published at http://investingincannabis.tv on October 7, 2020.
