Is Your Portfolio Prepared for Legal Pot?
Like many of you, I’ve been watching the rapidly expanding marijuana market for a while.
My interest wasn’t piqued until that fateful day in 2012 when Colorado became the first state to legalize marijuana for adult use.
Today, we’re seeing more support than ever for this issue...
And more opportunities than ever for investors to make a fortune.
Now, like any emerging industry, there are bound to be twice as many duds as there are truly good investments.
Probably the best part of investing, for me anyway, is that you don’t have to be a part of the industry you’re investing in to make money on it.
I don’t own an electric car, but you can be sure I’m all in on those lithium plays.
Likewise, you don’t have to be a smoker to start investing in the developing marijuana industry, either.
There are enough people out there already willing to use the stuff for medical and recreational purposes, and more states are legalizing its use every year!
And even though the market’s been building itself up for years already, there’s still plenty of time to get in on some of the biggest ground-floor opportunities this blossoming industry has to offer.
Here’s how big this chance will be...
Right now, marijuana is classified as a Schedule 1 drug, alongside such notable names as heroine, LSD, ecstasy, and bath salts.
Do you honestly think it belongs in that group?
And even though its classification is being challenged from all sides, this could explain why its legalization across the U.S. is taking the slow route.
Slow, but steady. At this point, legalization across the board is a matter of “when,” not “if.”
Right now, only 29 states and Washington, D.C., have legalized marijuana in some way.
Seven of those states have legalized it for recreational use as well as medical use.
These states get the added benefit of being able to tax the legal marijuana businesses, too.
Next year alone, we’re expecting to see new laws passed by Arizona, Florida, Idaho, Michigan, Missouri, Nebraska, Oklahoma, South Dakota, Utah, and Washington.
These include not only legalization and taxation of medical and recreational marijuana, but retroactive legalization as well.
Still, other states are struggling to get these issues up to ballot.
They’re clearly not looking at the issue with a financial kickback in mind...
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Marijuana Industry Outlook
Let’s take a look at one major metric that’s always cited when valuing an industry: jobs.
A recent report by New Frontier Data estimates that by 2020, the marijuana industry will have created as many as 255,000 new jobs across the U.S.
That’s on par with the renewable energy job market, which has outpaced the rest of the U.S. economy 12 times over in the past five years!
Keep in mind, that’s only accounting for the states that have already legalized.
And there are more on the way, make no mistake.
By 2025, New Frontier Data estimates that the industry will generate as much as $24.5 billion in state-to-state sales, not including any tax benefits those sales will offer.
New Frontier Data executive vice president John Kagia makes a salient point:
It’s very hard to look at both the numbers and associated economic dynamics and envision that this genie could be put back in the bottle.
Essentially, the industry is only going up from here.
States are already finding new ways to evade the stigma still surrounding marijuana sales.
This process of buying and selling the commodity hits a paywall when banks refuse to process related transactions, forcing buyers to pay entirely in cash.
One credit union in Colorado, the first state to fully legalize cannabis and its products, is offering a solution.
Rather than forking over piles of cash, buyers can now download and use apps like CanPay, which run the transaction through the credit union instead of going through one of the nation’s larger banks.
Dispensaries in Hawaii, in fact, are making sales this way exclusively.
As with any market, the more these processes get used, the easier they’ll become.
Of course, we don’t intend to wait that long before jumping on this lucrative opportunity.
I’ve keyed in on what I believe will be some of the most profitable stocks across the entire industry now that this green market is gaining momentum.
And I'm finally ready share what I've learned. Click here for my full report, including the three stocks you'll want to add to your portfolio today.
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
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