Is Trump Partly Responsible for the Bankruptcy of Remington?
Why I Love Guns and Pot Stocks
Don’t let emotions cloud your judgment.
This is rule #2 when it comes to investing.
And rule #1?
Well, that’s easy.
Exploit others’ emotions to get rich.
When everyone’s scared, be brave.
And when everyone’s greedy, be cautious.
This isn’t rocket science.
We’ve seen it time and time again.
To quote the great Warren Buffett...
Be fearful when others are greedy, and greedy when others are fearful.
As an investor, I live by this rule.
And it’s why I’ve been so successful in my 20+ years in the finance game.
A few months before Barack Obama became the 44th president of the United States, I was speaking at a renewable energy conference in Vegas.
The enthusiasm was overwhelming.
Everyone knew that if Obama were to win, the renewable energy industry would get a huge shot of steroids.
And it did.
But at that event, I told folks that while it was a great time to be a renewable energy investor, it was also a great time to be an investor in firearms.
Once those words fell from my mouth, you could’ve heard a pin drop.
I clearly disrupted the vibe.
The room was packed with mostly Democrats and progressives who championed gun control and had little interest in hearing about the Second Amendment.
But that’s not why I was there.
I was there for one reason, and one reason only...
To help people get rich.
And while there was going to be plenty of money to be made in the renewable energy space under an Obama administration, there would be even more to be made in gun stocks.
My entire argument for this was simple...
Hardliner gun rights advocates and NRA disciples were going to scare the crap out of gun owners all across the country by warning that this new president was going to take away their guns.
While I often tend to be at odd with most Democrats and progressives when it comes to the Second Amendment, I never feared losing my gun rights once the Obamas moved into 1600 Pennsylvania Ave.
And, in fact, as an investor, I actually became very enthusiastic because I knew the fear that would soon be sewn amongst gun owners would result in a rush on gun sales.
It was the classic case of “buy the fear.”
After Barack Obama was elected, American Outdoor Brands (NASDAQ: AOBC), the company that owns Smith & Wesson, soared 480%, and Ruger (NYSE: RGR) delivered gains in excess of 850%.
While some of my gun-owning friends spent the better part of the Obama administration sending me Facebook alerts about how our gun rights were in jeopardy, I was pulling in triple-digit gains by profiting off their fear.
Understand, I don’t say this to be brash.
This is merely an observation of truth.
Fear and greed are two very strong emotions that you can exploit to create and protect your wealth.
In fact, once it was clear that Donald Trump was going to become the president, I told folks to walk away from gun stocks. Because with a Republican in office and a Republican majority in Congress, there would be no fear that gun rights would be at risk.
The greatest ally a gun manufacturer has is a Democratic president.
Because Democrats stoke fear of gun control, and this fear leads to sales.
It’s just that simple.
Certainly, a lack of sales has not helped Remington, which has just filed for bankruptcy.
Look, when investors get greedy, I get cautious, and when investors get fearful, I get greedy.
I do hope you employ the same strategy because, quite frankly, it just works.
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Thanks, Jeff Sessions!
After Donald Trump became the 45th president of the United States, he quickly tapped Jeff Sessions to be his attorney general.
If you don’t know, Jeff Sessions is one of the most outspoken critics of marijuana legalization.
He once said, “Good people don’t smoke marijuana,” and in defiance of President Trump’s call to allow states to legalize marijuana without interference from the federal government, Jeff Sessions was very clear during his confirmation hearing that he would enforce federal marijuana laws... regardless of state laws that had already legalized marijuana.
Before Jeff Sessions came onto the scene, marijuana stocks were flying.
Pot stock investors were already sitting on triple-digit gains before Sessions got the nomination.
But once it was clear that Jeff Sessions would become the next attorney general of the United States, U.S. pot stocks sold off in a major way.
So, of course, we ran in and bought up all those cheap shares.
Well, take a look at some of these U.S. pot stock winners since Trump took office:
- MariMed (OTCBB: MRMD) — 401%
- Kush Bottles (OTCBB: KSHB) — 65%
- Innovative Industrial Properties (NYSE: IIPR) — 74%
Now, I’m not telling you this today to chest pound.
Instead, I’m telling you this because investors are starting to get fearful of pot stocks again.
Time to Buy
Last week, Jeff Sessions sent a memo to the nation’s federal prosecutors urging them to seek the death penalty in cases involving drug dealers.
While such an idea does seem absurd, Jeff Sessions actually promoted a state bill in 1996 to allow mandatory death sentences for drug trafficking convictions. And this included marijuana.
On the surface, I can see how folks would fear such a thing.
But this isn’t the Philippines.
Elected officials can’t go around knocking off drug dealers because they don’t like pot.
Besides, the Supreme Court actually banned mandatory death sentences in 1987.
Still, it’s headlines and fake news that oftentimes motivate less-savvy investors.
And that’s what happened last week after that memo came out.
So naturally, when we saw increased selling, we added to our pot stock positions. And they’re already coming back.
I have to be honest...
I’m somewhat thankful for Jeff Sessions, as not only has he helped me make even more money in pot stocks than I anticipated, but he’s actually motivated a lot of elected officials to introduce and support more legalization legislation.
Make no mistake; not only is the war on cannabis at odds with the majority of voters in this country, but it also limits the ability for the government to rake in a lot of tax revenue. And that, dear reader, is why only a fool would believe that the legalization of cannabis isn’t right around the corner.
It’s no wonder my 77-page e-book, “A Beginner’s Guide to Investing in Cannabis,” has become a best seller.
Not only does it outline how to make a ton of money in pot stocks, but it also lists more than 23 dirt-cheap pot stocks you can buy right now.
I also put together an introductory video on pot stocks for those who just want to learn more about the market and, of course, how to make a boatload of cash from pot stocks. You can watch that free video here.
Or you can just read this article, delete it from your inbox, and sit on the sidelines while the rest of us get rich.
If that’s what you choose to do, you might as well give up investing altogether because, quite frankly, this is the easiest money you’ll ever have an opportunity to make.
Don’t let fear and greed keep you from getting rich.
Instead, exploit the fear and greed of others to build your own wealth.
If this strategy is good enough for Warren Buffett, then clearly it’s good enough for you.
To a new way of life and a new generation of wealth...
@JeffSiegel on Twitter
Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.
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