A low-risk bet on legal marijuana
From Bill Shaw, Editor, Commodity Supercycles:
We know marijuana use is a hot-button issue for many folks…
But it’s not our job to judge whether it’s morally right or wrong. We don’t care if it’s used for medicinal or recreational purposes. As longtime subscribers know, we simply pass along the best investment ideas that we’d want you to share with us if our roles were reversed.
Like it or not, marijuana is a commodity. And support for it is only getting stronger…
In 1996, California became the first state to legalize the use of medicinal marijuana. In the two decades since then, more and more states have relaxed their marijuana laws.
In 2012, voters in Colorado and Washington approved the legalization of marijuana for recreational purposes. Today, nine states and Washington, D.C. have laws in place that allow recreational use. Another 21 states have approved the use of medical marijuana.
Overall, more than half the country allows some sort of legal marijuana. And all of this has taken place while marijuana is still technically illegal under federal law…
You see, under President Barack Obama, the federal government took a “hands off” approach to enforcing laws about the drug’s use. The Obama administration issued a series of memos that allowed states to legalize marijuana as long as they obeyed some guidelines (like not letting the marijuana fall into the hands of children or cross state lines).
However, at the beginning of this year, current U.S. Attorney General Jeff Sessions rescinded the Obama administration’s guidance. Essentially, Sessions’ decision allows federal prosecutors to make their own decisions on crackdowns in states where it’s legal.
We can’t know for sure whether Sessions will actively enforce the federal law going forward. Whatever happens, though, we know it won’t be easy to reverse the current shift in public sentiment. Americans are becoming more comfortable with legalizing marijuana use.
As you can see in the following chart, a recent survey from polling and analytics firm Gallup found that 64% of Americans currently favor legalizing marijuana use. That’s up substantially from about 12% in 1969 and double the percentage from 2000 (31%).
The Obama administration’s passive approach and growing public sentiment toward legalization have led many entrepreneurs and investors to look for ways to capitalize on this emerging industry. As you can see, so-called “pot stocks” have seen explosive growth…
You’ll also notice from the chart that we’re not just talking about a U.S.-focused market… These are the three largest marijuana growers by market cap in Canada – Canopy Growth (WEED.TO), Aurora Cannabis (ACB.TO), and Aphria (APH.TO).
Later this year, Canada could make recreational marijuana legal throughout the entire country. And as you can tell, regulators have already allowed marijuana companies to trade on Canada’s stock exchanges. That’s where you’ll find shares of most of the large marijuana companies. Plus, the country is already exporting medical marijuana. It seeks to be a leader in this space.
Other countries are legalizing – or at least decriminalizing – marijuana, too.
Mexico approved the use of medical marijuana last year. Several other major countries – including Australia, Germany, Italy, and Greece – have all legalized medical marijuana. Similar to what we’re seeing in the U.S. today, we believe these countries – and others around the world – will move toward full legalization in the near future.
Crux note: Instead of diving into the legal marijuana industry, Bill’s found a way for his subscribers to “dip their toes” into this sector… without buying a single pot stock.
It’s a real business with real profits that’s ideally positioned to capture the upside of this boom… Yet it has virtually none of the legal or regulatory risk associated with owning marijuana stocks directly.
Discover his lower-risk, 100% legal play on this commodity right here.