Nick: Jason, Merrill Lynch estimates the global market for legal cannabis is about $166 billion—that’s 25 times bigger than the medical marijuana market.
Now, we think it’s a great opportunity for investors. But what does the smart money think?
Jason: Well, it’s coming into this space with plenty of capital.
But let me back up and give you a personal look at the changing public mood towards legal cannabis. It’s important because Wall Street is watching how Main Street reacts.
You see, my 92-year-old grandmother has never touched a drug in her life. She doesn’t smoke. And she’s never taken any recreational pills. Her idea of letting loose is sipping one glass of wine a couple nights per year.
Now, you wouldn’t believe this… but she actually buys CBD oil to treat the arthritis pain in her knees.
Nick: Has it helped her?
Jason: Well, with a shrug and a grin, she says, “It works!”
And when my nonagenarian grandmother is using legal cannabis, you know there’s been a sea change in public opinion. That’s bullish for the industry.
Nick: Why do you say that?
Jason: Because legal cannabis isn’t just coming—it’s already here.
It has huge potential to be a runaway hit for the agricultural and commodities sectors. In turn, they’ll feed nearly all other sectors with vibrant, new revenue streams.
You see, hemp has about 50,000 industrial uses. You can use it to make clothes, paper, and even biodegradable plastics. So we’ll see a lot of hemp and CBD added to thousands of products.
In fact, the U.S. Hemp Crop Report shows acreage of hemp cultivation more than tripled from 2017 to 2018. And according to Grand View Research, the global industrial hemp market size will grow at an annual rate of 14% from now until 2025.
So I believe legal cannabis will be a big investment story. I can’t wait to see what happens next.
Nick: And what’s the smart money saying?
Jason: I’m seeing a huge push in the legal cannabis and CBD industry.
As you know, Nick, my proprietary stock-picking system scans nearly 5,500 U.S. stocks every day… looking for the best of the best that the “smart money” is likely buying up by the boatloads.
And it’s showing tons of capital is flowing into the space as it becomes more accepted and widespread.
Some of the most successful Wall Street and corporate names are filling up board seats in startup and existing cannabis firms. And this legitimizes them and makes them attractive targets for institutional investors.
We’re also seeing fewer legal hurdles for investing in cannabis…
For example, Colorado passed a bill last month allowing publicly traded companies to invest in the state’s cannabis industry. This is a game changer for legal cannabis in the public equity markets.
You see, institutional investors are just waiting for laws to change before deploying their capital. Once that happens, they’ll jump right into these stocks.
So again, this is very bullish for the industry.
Nick: How significant will this flood of money be?
Jason: Analysts expect CBD sales in the U.S. alone to reach $22 billion by 2022. In comparison, U.S. wine sales are at $29 billion.
So you can see how potentially big the legal cannabis market can be as it catches on.
Nick: Thanks for your time, Jason.
Jason: You’re welcome.