Earlier last week at the airport, I picked up an issue of National Geographic.
I’m sure most of you are familiar with the magazine. Occasionally, they release special print issues that dive into one particular topic in much more detail.
The title of the one I picked up was: “Marijuana Medicine – The Science of Unlocking the Secrets of Cannabis.”
Like most people, I grew up with negative connotations associated with cannabis in general.
But I’ve learned a lot since then, and I devoured this 100-page magazine in less than the two hours it took me to get from Copenhagen to Brussels.
Humans have used cannabis in one form or another for over 6,000 years. George Washington planted it in his garden. Queen Victoria had it prescribed for menstrual pains. And the Chinese have used it in clothing since the beginning of civilization.
Cannabis was only made illegal early in the 20th century as the global trend toward drug restriction took effect, which included a ban on alcohol in the US.
But I’m not here to tell you about the history of cannabis. I’m here to tell you why I think it is the single biggest investment opportunity of our generation.
Unless you’ve been living in a cave for the past few years, you know that cannabis is becoming more and more mainstream by the day.
The scientific community has more recentlyawoken up to the potential of cannabis – particularly in medical use.
Governments and states around the world are increasingly legalizing its use – both recreationally and medicinally.
(Even heads of States are users – Shinzo Abe, for example, the prime minister of Japan, takes cannabis oil against Chron’s disease.)
As an investor, catching the wave as cannabis emerges into the mainstream could be one of the best investments you make over the next decade.
I’m not saying that lightly.
Most investments with explosive upside potential meet at least one of the following three criteria.
And cannabis meets all three:
- It has vast potential for growth.
The cannabis market is still in the very early stages of growth that will eventually encompass everything from pharmaceuticals to consumer goods, beverages, wellness, etc.
2. It has global demand.
Cannabis is a global market that affects almost every country on the planet. It already has an estimated 192 million users worldwide – although it’s still illegal almost everywhere. In the US alone, the market could be worth around $100 billion in the next decade.
3. Cannabis stocks are under-owned by big financial institutions
Most financial institutions anywhere can’t buy cannabis stocks yet because it’s still illegal. But you can. That means the owners of cannabis stocks today are mostly individual investors like you and me. But when big institutions are finally allowed to invest in cannabis, we can expect to see a massive inflow of demand and capital into the sector, which will be great news for stock prices.
Luckily for us, the cannabis market meets a 4th criteria that is rare but will likely multiply your gains every further: it’s on sale.
Cannabis stocks across the board have fallen 60-80% from their all-time highs, and countless numbers of cannabis stocks are outright cheap today.
Just like the dotcom bubble, a lot of these companies will not exist in a couple of years. But some of them will – and they will become the leaders of the industry.
The first wave of cannabis craze brought about the birth of large Canadian producers.
But the next wave will bring about the new leaders in packaged consumer goods in the US.
(I’ll tell you about the third wave in another newsletter).
85% of Americans support cannabis for medical uses, and 62% of people support legalization at the federal level.
Every single Democratic candidate in the US presidential election favors cannabis (even Joe Biden changed his previously negative stance on it just last week)
Legalization in the US – likely the biggest consumer market for cannabis in the world - is no longer a matter of “if” as much as a matter of “when”.
Today, you can already buy cannabis stocks that will benefit from this wave of support – and position yourself to profit tremendously.
Now, I wouldn’t recommend you bet the farm on any one investment. I tend to concentrate my investments on a few, select companies I think will be winners, but even a diversified portfolio of cannabis stocks is likely to do very well in the next 5-10 years.
Right now, cannabis stocks are on sale. There couldn’t be a better time to start accumulating shares if you haven’t already.
I’ve personally been buying into the cannabis sector aggressively over the last two months.
In fact, cannabis is my single biggest investment position today. And I don’t see that changing anytime soon.
I believe this will be one of the most lucrative investment trends over the next ten years.