Good, better, best.
Never let it rest.
Until your good is better and your better is best.
That pearl of wisdom is courtesy of either St. Jerome, NBA star Tim Duncan, or good old “author known,” according to Google.
No matter who said it, I thought about that quote when analyzing the performance of the market, marijuana stocks in general, and the marijuana stocks I’ve recommended in particular.
Good: The S&P 500 had its best first half of a year in two decades, up 17%.
Better: Marijuana stocks beat that by 10 percentage points. ETFMG Alternative Harvest ETF (MJ), which tracks the industry, jumped 27% in the first six months of 2019. Any industry that can beat the market by 20% on an annualized basis will make investors a lot of money over time.
BEST: Our Investment Opportunities cannabis stocks killed both the S&P 500 and Alternative Harvest ETF, surging 42% on average. That includes two doubles: Innovative Industrial Properties (IIPR, +172.2% in the first half of 2019) and Akerna (KERN, +113.8%). (Akerna was one of my Cannabis Cash Calendar recommendations that posted some big gains, and I’ll release my next pick on Monday.)
In fact, over the last nine months, seven of our Investment Opportunities cannabis stocks reached double status – they gained 100% or more from my initial recommendations. Some have since pulled back, others continue to rally, and in a couple of cases we sold a portion of our shares to lock in those 100%+ gains. We’re letting the rest ride for much bigger profits.
Actually, not only did we hit seven doubles (which in investing are more like home runs), two stocks reached 4X gains (which are like grand slams).
I am not writing about our successes to brag. Our work is far from done. We want more than doubles from our cannabis stocks. We are looking for 5X, 10X, and even more in certain situations.
Rather, my message to you is this: Marijuana legalization is unquestionably one of the best investment opportunities of your lifetime, and investing early increases your chances of building life-changing wealth. We made a lot of money in marijuana stocks in the first half of 2019, but the legalization trend is still in its early stages, so it is not too late for you to do the same in the second half of the year.
Second Half Outlook: More Profits to Come in Cannabis Stocks
As we begin the second half of 2019, now is actually a great time to buy select marijuana stocks. The ETFMG Alternative Harvest ETF jumped 27% in the first six months of 2019, but a lot of investors aren’t feeling so jubilant because cannabis stocks as a group drifted lower in the second quarter.
Investors are focused on that 18% pullback over the last three months. It’s the old, “What have you done for me lately?” view.
Listen, I get it. I am human also. We’re just wired to put too much emphasis on the recent past. But it’s a mistake. We lose sight of the bigger picture and what’s to come.
That’s what separates investors who fulfill their dreams from the investors who keep trying but never seem to get there. The marijuana investment theme is a long-term strategy that will have highs and lows, and investors who are willing to ride out the trend will be very happy and wealthy in a few years.
So what catalysts will drive marijuana stocks for the remainder of 2019 and the years ahead? Glad you asked. There are a bunch, but let me tell you about five of the biggest.
1. Canada Legalization 2.0: Last October was a monumental month for marijuana when Canada became the first major country to legalize it on a recreational level. A lot of people don’t realize that October will be significant again this year when Canada takes the next big step and legalizes marijuana edibles, extracts, and topicals.
The products will hit the shelves in December, and this could lead to an additional $2 billion in sales, according to Deloitte estimates. There are great companies out there that will benefit from Legalization 2.0, from the extraction companies needed to turn the flower into oils used in the alternative products to the makers of the edibles and topicals.
2. More Deals: I wrote to you on Wednesday about how alcohol, tobacco, and pharma companies are jumping on the cannabis bandwagon. They need to make moves at some point in the very near future or risk being on the outside looking in. We saw several big names move into the marijuana sector in the last year: Constellation Brands (STZ), Molson Coors Brewing Company (TAP), and Altria Group (MO), to name a few.
We will also see more deals within the marijuana industry. The world leader, Canopy Growth (CGC), has a deal in place to buy Acreage Holdings (ACRGF) if and when the U.S. legalizes marijuana at the federal level. I’ve told you before this is one of the biggest tells I’ve come across that legalization is coming… and it’s closer than most people think. I expect more Canadian companies will start to move south of the border and more U.S. companies will merge to create industry leaders.
3. More IPOs: Initial public offerings (IPOs) are one of the best opportunities in the marijuana sector. Not buying stocks pre-IPO, which most investors can’t do, but having a smart strategy to buy the best at the right time after they’ve begun trading. I created the Cannabis Cash Calendarto let investors like you into the world of marijuana IPOs and help you smartly navigate it.
The Cannabis Cash Calendar has been highly successful due to our proprietary system of identifying characteristics of marijuana IPO winners. My next recommendation will be released this Monday, July 8. I am excited to reveal the stock to my readers. You can get on the list to be notified as soon as I do.
4. Hemp & CBD: The passage of the Farm Bill in December opened the gates to the CBD craze and gave the CBD/hemp market a boost during the first quarter. That rally subsided in the second quarter as regulation concerns reared their ugly head. Here’s what a lot of investors aren’t thinking through: Some regulation of the industry is needed to get rid of the snake oil salesmen. That’s good news for the reputable CBD leaders.
Updated regulations will lead to more large-scale retailers offering CBD/hemp products. Walgreens, CVS, Walmart, and others are already planning to offer the products around the country. Big box retailers jumping on the bandwagon will be the story in the next 18 months as the products become available to the masses. You can see why the industry is expected to grow 40X in the next few years, creating a lot of large winners along the way.
5. U.S. Legalization: This will be the biggest catalyst in the history of the marijuana industry. The day the U.S. government passes a legalization plan on the federal level will be a defining moment that will mark the next era in marijuana investing.
That day is a lot closer than investors realize. There is a landmark hearing in Congress coming up next week. It is believed to be the first congressional hearing in history to reconsider the current federal ban on marijuana.
I put the odds of a legalization plan passing in the next 18 months well above 50%. I realize my predictions are not always the popular view, but then again buying Bitcoin at $10 was not popular a few years ago… and we all know how that turned out.
Remember, we’re still in the early stages of this massive legalization trend in America and around the world. The key to making the biggest gains from the monumental announcement is getting in early. And by early I mean right now… as in today.
You’re not too late. But please don’t wait.
P.S. If you’re not sure how to get started, I’m about to release my NEXT pick on Monday – July 8.
I’ve got a whole system for finding marijuana stocks that I call the Cannabis Cash Calendar. I designed it to let investors like you benefit from one of the best wealth-creating strategies throughout history: Buying early.
However, I do caution everybody who will listen that you don’t want to just buy any old IPO — even in a transformative industry like legal marijuana.
There’s homework involved. And it’s crucial to get the timing right.
Let me take care of that for you. You can get in on the action — and be ready for Monday’s new buy — by reviewing the details and signing up here.
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