Today’s continued rally across equity markets is providing a bullish lift to many investors who have had their sentiment beat down to a great degree this year. While broad-based, certain sectors of the market are rallying more than others today. Among the leading stocks investors are watching are psychedelic companies such as Bright Minds (NASDAQ:DRUG). Today’s 30% surge in DRUG stock is emblematic of some of the moves we’re seeing today.
As fellow InvestorPlace contributor William White pointed out, Mind Medicine (NASDAQ:MNMD) is another big mover, surging 10% higher earlier today. This sector has gained steam from some intriguing comments made by Sen. Cory Booker from New Jersey. In a video posted on Twitter yesterday, Booker outlined his case for why psychedelics could pose therapeutic solutions and should be looked at through a scientific lens.
Booker’s view is shared by many investors in psychedelic stocks. However, seeing this rhetoric displayed is something that’s certainly raising eyebrows and boosting the sector today.
Let’s dive into what investors should make of this news.
Is Now the Time to Buy DRUG Stock?
Psychedelic drugs such as psilocybin and MDMA have shown some pretty impressive results in International studies on therapeutic solutions for disorders such as post-traumatic stress disorder (PTSD) and depression.
That said, because of laws prohibiting the use of these drugs in the U.S., little research has been conducted stateside. Booker and others are leading the charge to shift the paradigm to a science-first approach to these drugs.
For companies like Bright Minds, a biotech focused on psychedelic therapies for such disorders, today’s rhetoric is good news. Potential decriminalization or legalization efforts start with words. And right now, while we’re still in the very early innings of what will need to be much deeper discussions on the topic, it’s a start. Indeed, investors have reason to be excited about DRUG stock right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
