When Daily editor Teeka Tiwari and I launched Palm Beach Special Opportunities in July, we knew big things were coming for the psychedelic industry.
But what happened in 2021 blew away all our expectations for the psychedelic renaissance.
It seems psychedelics are trending everywhere we look… having appeared on recent covers of Time, Newsweek, and Rolling Stone.
Celebrities like Will Smith and Megan Fox have come out publicly about their positive experiences treating their mental health with psychedelics, with both superstars reporting incredible transformations.
In his recent best-selling memoir, Will Smith wrote about his first ayahuasca journey:
In my 50-plus years on this planet, this is the unparalleled greatest feeling I’ve ever had.
Even the world’s richest man, Elon Musk, is on board.
In September, Musk expressed his support for the therapeutic use of psychedelics and went on to predict changing laws:
A lot of people making laws are from a different era… As the new generation gets into political power, I think we will see greater receptivity to the benefits of psychedelics.
Psychedelics are also making their way into popular culture. Just look at the top-rated Hulu series Nine Perfect Strangers… It’s a show starring Nicole Kidman about a group of people given psychedelics without their knowledge but with great therapeutic benefit.
We’ve seen this before…
Recently, a sea change in public sentiment has brought cannabis to the forefront of medical research and legitimacy. According to polls from Gallup and Pew Research, about two-thirds of Americans now support cannabis legalization.
Currently, some form of cannabis is legal in all but six states. Of those 44 states where cannabis is allowed, medical sales are legal in 36.
It’s clear we’re moving toward broader acceptance of psychedelic therapies. And we believe it’s only a matter of time before they become widespread.
Despite growing acceptance of plant-based medicines in America, market sentiment has yet to catch up with the fundamentals.
For instance, as of this writing, the Defiance Next Gen Altered Experience ETF (PSY) is down 49% since it launched in May 2021. But we remain bullish… And once the market wakes up to what’s going on… We’ll see a furious rally that’ll send share prices skyrocketing.
Remember, like crypto, we’re still early in this trillion-dollar trend. So we’ll see plenty of volatility.
That’s the price we pay for the life-changing gains.
But volatility cuts both ways. And we believe psychedelic stocks are poised for a massive run in 2022.
The U.S. is moving toward rescheduling these potentially life-saving drugs from Schedule 1 (no accepted medical use with high potential for abuse)… to Schedule 3 (recognized medical benefit with moderate to low potential for abuse).
At the same time, the legalization trend for medicinal use of psychedelics is picking up steam across the country.
Groundbreaking new research is demonstrating the efficacy of psychedelic medicines to treat mental health disorders ranging from depression to post-traumatic stress disorder (PTSD).
And most importantly, we’re seeing institutional interest in this space begin to pique.
We’re Closer Than Ever to Federal Legalization
The biggest catalyst that will launch the psychedelic medicine industry to the next level will be the FDA rescheduling psychedelics from Schedule 1 to Schedule 3.
By reclassifying and acknowledging these compounds have medical benefits, the FDA will enable both the medical establishment and pharmaceutical industry to bring psychedelic therapeutics to market.
This feels truly imminent, with mounting research happening across state and city levels.
At the national level, the federal government recently funded the first psychedelic study in more than 50 years, which will take place at Johns Hopkins University.
The study will determine whether the active compound in psilocybin mushrooms can help people quit smoking.
The game truly changed when the FDA granted psilocybin a “breakthrough therapy” designation for treatment-resistant depression and major depressive disorder in 2019, opening the door for additional future studies.
Another great sign for the potential reclassification of psychedelics was a section in a recent memo from the Drug Enforcement Agency (DEA).
It called for legal producers to double the production of psilocybin, increase LSD production 12x, and expand MDMA (known as Molly or Ecstasy) production by 64x in 2022.
Overseas, British Prime Minister Boris Johnson recently promised to examine the latest research on psilocybin mushrooms and consider legalization for medical use.
It’s an exciting time for companies at the forefront of this emerging industry… and even more exciting for the millions of people who will benefit from psychedelic medical breakthroughs.
Better Treatment for Mental Health
We’ve also seen new mind-blowing data this year…
The peer-reviewed scientific journal Nature published data in November showing that adults who microdose psychedelics reported lower levels of anxiety and depression compared to non‐microdosers.
As the name suggests, microdosing is the act of taking relatively small amounts of a substance over an extended period of time.
The term has come to specifically apply to potent psychedelic compounds known for producing hallucinogenic effects – everything from iboga (derived from a shrub) to psilocybin.
Also in November, Compass Pathways’ Phase II trial of psilocybin showed great promise in relieving symptoms among people with treatment-resistant depression.
Phase II is the gold standard of clinical trials. Researchers administer the treatment to a larger group of people to assess effectiveness. Positive results at this stage can lead to excitement in the medical and investing communities.
Another recent Phase II trial, published in the New England Journal of Medicine, demonstrated that two doses of psilocybin three weeks apart treated depression as effectively as six weeks of daily escitalopram, a traditional antidepressant (SSRI).
Even Faster Than We Imagined
This year, Teeka identified psychedelic medicine as his third trillion-dollar trade after Apple and bitcoin.
Teeka was right about those first two trillion-dollar trades… and it’s all thanks to his simple formula for reaping the benefits: Be early and be right.
Because when you get positioned early in the right companies, you can reap exponential returns when a major catalyst occurs.
In this case, the major catalyst will be the rescheduling of psychedelic compounds and the subsequent flood of new treatments coming onto the market.
We believe this catalyst will be like owning pharmaceutical companies in the 1920s and biotech companies in the 1990s… You can capture 100 years of stock market returns in as little as 18 months.
So, between state rescheduling and companies reporting strong clinical trial data, the pressure to reschedule is near a tipping point.
It’s only a matter of time before these breakthrough compounds replace antidepressants, pain medications, and addiction treatments.
Once the market awakens to this, it’ll create truly tremendous shareholder returns.
Co-editor, Palm Beach Special Opportunities
P.S. As I mentioned above, psychedelic medicine isn’t the only trillion-dollar trend we follow here at PBRG…
A coming crypto catalyst could unleash extraordinary gains in a handful of altcoins… bigger and faster than anything we’ve seen this year.
Teeka calls it the “Final Countdown,” and when it triggers it’ll send mainstream investors rushing into crypto. But once everyone is on board, the chance to earn the biggest profits will have already passed.
To learn more about the Final Countdown and receive the name of Teeka’s No. 1 crypto to play it, click here.