Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Stock Market Dow Trend Forecast Current State - 22nd Apr 21
Gold Rebounds Amid Positive Economic Reports - 22nd Apr 21
China's record first quarter fuels strong expansion in 2021 - 22nd Apr 21
Gold Price Next Key Level - 22nd Apr 21
Here's What to Look For When Hiring a Real Estate Agent - 22nd Apr 21
Ethereum EIP 1559 and Raven Coin - 21st Apr 21
Gold, USDX: The Board is Set, the Pieces are Moving - 21st Apr 21
World Economies Need to Find a Lot More COPPER! - 21st Apr 21
DogeCoin CRASH! Time to Start Mining BOODGIE Coin! Crypto Mania 2021 - 21st Apr 21
Pausing Stocks and Gold Fireworks - 21st Apr 21
Precious Metals and Miners Start of New Longer-Term Bullish Trend - P2 - 21st Apr 21
Looking For A Mortgage Broker? Here Is How To Hire One - 21st Apr 21
Amazon AMZN Stock PRIMEDAY SALE! Trend Analysis - 20th Apr 21
Stock Market Sentiment Speaks: You May Not Believe My 2021 Targets - 20th Apr 21
Stock Market Phase Two Projection - 20th Apr 21
Are Precious Metals & Miners Starting A New Longer-Term Bullish Trend? - 20th Apr 21
Inflation: First the Gain, Then the Pain… - 20th Apr 21
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

The Marijuana Investing Game is Just Starting

Companies / Cannabis Sep 02, 2018 - 01:16 PM GMT

By: Rodney_Johnson

Companies I recently traveled to Toronto, Canada. My wife and I took a bicycle tour and traveled to the waterfront, the old Distillery District, over to the CN Tower, up to Chinatown, and then through Kensington.

You notice things as you ride around. The people are nice, almost to a fault. The streets aren’t as clean as I expected. The population is very diverse, and they speak many languages.

And there’s a lot of pot.

The Canadians voted to make recreational pot legal this year. It was supposed to happen in July, but was pushed back to October 17 because the provinces weren’t ready.

But that hasn’t stopped the people in Toronto from lighting up.

As a child of the ‘70s, I recognize the smell of pot. On the first day, when we’d pass people on the street that smelled like a head shop I’d quickly turn to see who’d been toking up.

By the third day, I didn’t care. It was so common that it didn’t matter.

Keep in mind, this is before pot is legal.

After the bike tour my wife and I returned to Kensington, which is an eclectic shopping district.

At one point I noticed a small tent between two townhouses.

A group was trailing under the tent toward the back yard. I followed (of course), and we found ourselves in a marijuana bazaar, with everything from the smokable buds to the edibles, oils, and topical creams.

A lot of Canadians are ready for legalization. They expect the industry to be worth several billion dollars.

That’s nice. But it’s small potatoes. The real prize is here in the U.S., and we’re only starting to scratch the surface.

Marijuana is legal for adult use in nine states, and for medical use in 30 states. But those numbers are terribly misleading.

Yes, marijuana is legal for adult use in California, but the laws governing licensing, inspection, and compliance are onerous, as are the taxes. And then there’s the little matter of how you run your business.

Because marijuana is still a Schedule 1 drug per the federal government, no business with a national charter or regulator, like banks, will touch the industry.

The pot industry runs on cash, using greenbacks to pay for everything from inventory to employees to taxes. This has created a cottage industry for security guards!

And when you file your business taxes, you can’t write off the cost of inventory as an expense. The IRS won’t allow you to deduct the price of illicit drugs.

It’s no wonder that, even though pot is legal in some states, it hasn’t destroyed the black market.

As for medical marijuana, it exists in name only in many places. I wrote about this last year in Boom & Bust.

In Texas, you can get a prescription for medical marijuana, but only if you have epilepsy. And you’ve tried at least two other drug regimens without success. And your doctor, who must spend at least 70% of his time on such diseases, prescribes the drug. And then you get a second opinion.

Right. That’s not access. That’s denial.

But we know something. The market is coming, because 9% of Americans over 18 years old say they have used marijuana in the last month, and 14% say they have used it in the last year.

The number of adults using marijuana regularly has grown dramatically since 2009, from 15 million to more than 22 million. And there are currently more than 2 million Americans registered to receive medical marijuana.

Both of these markets will grow (pun intended) dramatically over the next decade.

Attorney General Jeff Sessions threw cold water on the industry earlier this year when he rescinded the Cole Memo. That memorandum instructed the Justice Department to follow state law with regard to prosecuting marijuana crimes, which meant ignoring it in states where it is legal.

Sessions instructed his prosecutors to follow the law. So far, there hasn’t been an uptick in pot prosecutions in states where it is legal.

The market will grow, whether Jeff Sessions likes it or not.

And it won’t be because a bunch of Millennials – or Boomers for that matter – want to get high.

Instead, it will be aging Boomers, those with creaky knees, rheumatoid arthritis, and painful hips and shoulders who demand the change.

This group will want access to a pain reliever that won’t kill their kidneys like ibuprofen, and won’t destroy their lives like opioids. And is cheap.

Medical marijuana, and even over the counter pot, will fit the bill.

This industry is coming. It will be massive. And it’s just getting started.

I’ll talk more at our Irrational Economic Summit in Austin next month about the pot industry, how it’s developing, and the opportunities we have as investors to get in on the ground floor.

I hope to see you there! We’re holding a special Labor Day weekend sale on tickets, so keep an eye out for the details.


Follow me on Twitter ;@RJHSDent

By Rodney Johnson, Senior Editor of Economy & Markets

Copyright © 2018 Rodney Johnson - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rodney Johnson Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules