Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
Bitcoin Price Wavers - 15th Jan 19
History Shows That “Disruptor Stocks” Will Make You the Most Money in a Bear Market - 15th Jan 19
What Will the Stock Market Do Around Earnings Season - 15th Jan 19
2018-2019 Pop Goes The Debt Bubble - 15th Jan 19
Are Global Stock Markets About To Rally 10 Percent? - 15th Jan 19
Here's something to make you money in 2019 - 15th Jan 19
Theresa May to Lose by Over 200 Votes as Remain MP's Plot Subverting Brexit - 15th Jan 19
Europe is Burning - 14th Jan 19
S&P 500 Bounces Off 2,600, Downward Reversal? - 14th Jan 19
Gold A Rally or a Bull Market? - 14th Jan 19
Gold Stocks, Dollar and Oil Cycle Moves to Profit from in 2019 - 14th Jan 19
How To Profit From The Death Of Las Vegas - 14th Jan 19
Real Reason for Land Rover Crisis is Poor Quality of Build - 14th Jan 19
Stock Market Looking Toppy! - 13th Jan 19
Liquidity, Money Supply, and Insolvency - 13th Jan 19
Top Ten Trends Lead to Gold Price - 13th Jan 19
Silver: A Long Term Perspective - 13th Jan 19
Trump's Impeachment? Watch the Stock Market - 12th Jan 19
Big Silver Move Foreshadowed as Industrial Panic Looms - 12th Jan 19
Gold GDXJ Upside Bests GDX - 12th Jan 19
Devastating Investment Losses Are Coming: What Is Your Advisor Doing About It? - 12th Jan 19
Things to do Before Choosing the Right Credit Card - 12th Jan 19
Japanese Yen Outlook In 2019 - 11th Jan 19
Yield curve suggests that US Recession is near: Trading Setups - 11th Jan 19
How Unrealistic Return Assumptions Are Ruining Your Stocks Portfolio - 10th Jan 19
What’s Next for the US Dollar, Gold, Stocks & Bonds? - 10th Jan 19
America's New Africa Strategy - 10th Jan 19
Gold Mine Production by Country - 10th Jan 19
Gold, Stocks and the Flattening Yield Curve - 10th Jan 19
Silver Price Trend Forecast Target for 2019 - 10th Jan 19
Silver Price Trend Forecast 2019 - 9th Jan 19
Did Strong December Payrolls Push Gold Prices Up? - 8th Jan 19
How to Spot A Tradable Stock Market Top? - 8th Jan 19
Why 90% of Traders Lose - 8th Jan 19
Breadth is Very Strong While Stocks are Surging. What’s Next for Stocks - 8th Jan 19
Half of Investment-Grade Bonds Are Just One Step from Junk Status - 7th Jan 19
Stocks Rallied Again, Still Just an Upward Correction? - 7th Jan 19
Gold Golden Long-Term Opportunity - 7th Jan 19

Market Oracle FREE Newsletter

Bitcoin Analysis and Trend Forecast 2019

Are These the New Leaders of the Pot Market?

Companies / Cannabis Nov 05, 2018 - 04:43 PM GMT

By: Rodney_Johnson

Companies The SEC, the government watchdog, and TDAmeritrade, the self-service brokerage firm, recently issued warnings about buying into the pot industry hype.

Watch out!, they tell us. The pot industry is filled with high-flying stocks, overbought companies, and outright scams. Lions and tigers and bears, oh my!

I think we’ll find our way out of the forest, thank you very much.

I wonder how such companies would compare to Pets.com from the 1990s, or Enron, or even WorldCom, for that matter.


Was TDAmeritrade giving investors a heads-up on internet stocks in the 1990s, or all stocks in 2008? And where was the SEC, oh, ever?

This is the same organization that audited Bernie Madoff three times and gave him a clean bill of health, and recently gave Tesla (Nasdaq: TSLA) CEO and Founder Elon Musk a pass on fraud. Very credible sources.

I’m more inclined to go with the facts.

Through the Drug Enforcement Agency (DEA), the U.S. government tags marijuana as a Schedule I drug. That means it is highly addictive, has no known medical benefits, and cannot be safely prescribed at any dosage.

Right.

Through another agency, the Food and Drug Administration (FDA), the U.S. government has just approved Epidiolex, a marijuana-based drug that can minimize epileptic seizures.

The FDA went so far as to send a letter to the DEA calling for CBD, one of the active ingredients in pot, to be removed from any classification under the Controlled Substances Act.

The DEA demurred, tagging Epidiolex as Schedule V, the lowest level, and leaving marijuana as a Schedule I.

Thirty states and the District of Columbia have legalized medical marijuana. Nine states and the District of Columbia have legalized recreational pot.

The national government and the states are on a collision course when it comes to marijuana, and impeding crash means one thing.

Opportunity.

Yes, it’s the wild, wild west of investing. That’s what makes it interesting. This isn’t a cryptocurrency, where you build it and hope that clients will show up later. The market exists, and consumers are demanding access. And it will grow.

Acceptance is growing. Marijuana laws are falling.

Canada launches legal marijuana sales tomorrow.

When the United Sates’ federal laws finally melt away, the business will explode in the U.S., coronating kings of the industry and creating wealth for investors.

The issue, as always, is figuring out what to buy… and when. We’re not there yet, but we’re close.

I’ll be talking about this next week at our Irrational Economic Summit in Austin. (If you’re not going to make it person, be sure to follow on our live stream.)

Today, we’re stuck with Canadian companies that are grossly overvalued, run up in price by investors hoping to get a piece of the action as the world awakens to this industry. Tilray Research (Nasdaq: TLRY) is a great example.

The Canadian firm went public on the Nasdaq last summer. You could’ve purchased shares for about $20. Since then, the stock has run up to $300, and then back down to $120.

Tilray’s recent claim to fame is that the DEA has approved the company to provide pot for research. That’s pretty funny, since many U.S. firms have applied and heard nothing but crickets.

But investors are hungry for any stock in the space, and rightfully so. This market will explode in the next several years. We’re going to be talking about it, bringing you research and insight. No matter what sort of warnings we hear from the powers that be.

The facts tell us that this is a market to follow, so that’s what we’ll do.

Rodney

Follow me on Twitter ;@RJHSDent

By Rodney Johnson, Senior Editor of Economy & Markets

http://economyandmarkets.com

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

© 2005-2018 http://www.MarketOracle.co.uk - 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