It’s time to invest in “the stocks of the next pot”
Today I am going to reveal what I call “the next pot stocks.” “
Letters, conferences and more on hedge funds in the second quarter of 2021
Cathie Wood takes on Rob Arnott on Growth Vs. Value
The back-and-forth between growth and value is a centuries-old story that has particular implications for today. Cathie Wood of ARK Investment Management and Rob Arnott of Research Affiliates joined Morningstar’s Daniel Needham at the Morningstar Investment Conference last week to talk about growth and market value. Q2 2021 Hedge Fund Letters, Find out more
The next pot stocks
This is a new class of shares that offer the rare opportunity to enter the ground floor of an investment craze …
Much like the jar stocks a few years ago.
You probably remember that craze … when many companies in the marijuana industry jumped 1,000%, 2,000%, even 3,000% in less than three years.
The next pot stocks could offer investors similar gains… and they could do it even faster.
- This is because The Next Pot Stocks solves a multibillion dollar problem.
According to Our world in data, 970 million people in the world suffer from mental disorders or addiction.
That’s 12.4% of all people on earth.
The Lancet Global Health is one of the most respected health journals in the world. He estimates that mental health problems cost between $ 2,000 and $ 5,000 billion a year.
And Psychiatric schedules says mental health problems will likely cost $ 16 trillion each year by 2030. That’s more than three-quarters the size of the entire US economy.
Something must change.
This is where The Next Pot Stocks comes in…
Scientific evidence shows that they can treat many devastating and costly mental health issues like depression, anxiety, and opioid addiction. And they can do it better, faster, and at a fraction of the cost of existing treatments.
I’ll reveal what these stocks are in a minute.
Soaring original pot stocks
- But let’s first look at why the original pot stocks took off like a rocket …
For decades, pot was not only socially frowned upon: it was illegal …
Even though scientists knew that marijuana had legitimate medical uses, like treating pain and seizures.
Today, the pot is fully legal in 15 states and Washington DC. 22 other states have legalized it for medical purposes. That’s 37 states plus DC where people can legally consume marijuana.
Simply put, pot stocks increased as pot was legalized.
In less than seven months, the North American marijuana index jumped 241% as legalization in the huge California market became imminent.
But the individual names have soared even higher …
Aurora Cannabis Inc (NASDAQ: ACB) climbed nearly 4,000% in just two and a half years.
Source: Yahoo Finance
Canopy Growth Corp (NASDAQ: CGC) jumped almost as much in three years.
Source: Yahoo Finance
And GrowGeneration Corp (NASDAQ: GRWG) flew over 1,500% in just two years.
Source: Yahoo Finance
I see the same thing happening with The Next Pot Stocks…
The substances they deal with have been socially frowned upon and downright illegal for decades.
But that is about to change.
Social stigma is quickly disappearing as more and more stories are published about these life-saving substances.
Former NBA star Lamar Odom, for example, has well-documented substance abuse issues. He says these substances saved him from his drug addiction.
- If you haven’t figured it out yet, I’m talking about stocks of psychedelics …
Psychedelics are compounds like LSD, ecstasy (MDMA), and magic mushrooms (psilocybin).
For decades, I have read about how psychedelics can treat issues like depression, anxiety, PTSD, bipolar disorder, and substance abuse. And they can deal with these problems more efficiently, Following without issue, and with less side effects than drugs currently on the market.
Today, clinical trials confirm this to be true with real scientific evidence.
World-renowned Johns Hopkins University launched the Center for Psychedelic and Consciousness Research in September 2019 to study these compounds.
One of their recent trials showed that psilocybin was effective in treating depression and anxiety in patients with life-threatening cancer.
Other clinical trials conducted by a non-profit organization have shown MDMA to be a safe and effective way to treat PTSD in veterans.
- More importantly, the US government is finally moving towards legalizing many psychedelics.
For example, the Food and Drug Administration has awarded a “breakthrough therapy designation” to a psilocybin-based drug developed by COMPASS Pathways. The drug shows great promise in the treatment of major depressive disorder.
The “breakthrough therapy designation” is a rare and coveted award for drug makers. It speeds up a drug’s development when evidence shows it could be a big improvement over available therapies.
In short, the evidence is mounting that psychedelics can help millions of people. It’s only a matter of time before we get a big wave of legalization, like we did with marijuana.
This is why psychedelic stocks are starting to appear on investor radars …
For US investors, a psychedelic ETF has already started trading under the symbol PSY.
Some of the psychedelic stocks that trade on major US exchanges are COMPASS Pathways PLC (NASDAQ: CMPS), Mind Medicine Inc (NASDAQ: MNMD), Seelos Therapeutics Inc (NASDAQ: SEEL), and ATAI Life Sciences NV (NASDAQ: ATAI).
- This is the “start” of psychedelics … and the odds are ripe in favor of patient investors who are ready to pounce when the perfect opportunity presents itself …
As I mentioned, the situation reminds me of pot stocks three or four years ago.
Legitimate scientific research is building up that psychedelics are medically useful …
And that they don’t need to be harmful when used correctly, under medical supervision.
The stigma around psychedelics is receding.
And governments are slowly but surely starting to legalize some of them.
That’s why psychedelic stocks are one of the best ideas on my radar.
The big disruptors: 3 revolutionary actions ready to double your money “
Get our latest report where we unveil our three favorite stocks that will give you 100% gains as they disrupt entire sectors. Get your free copy here.
Article by Chris Wood, Mauldin Economics