I love capitalism.
It allowed a 16-year-old kid from England—who arrived in the U.S. with only $150 in his pockets and zero connections—to become a self-made multimillionaire.
American capitalism made that happen.
So you might be surprised that I’m writing today about an avowed socialist like Bernie Sanders.
Let me explain…
Last week on The Joe Rogan Experience podcast, Bernie said he’d legalize cannabis by executive order if elected president:
You can argue the plusses and minuses of marijuana, but marijuana ain’t heroin. So we have to end that, and that’s what I will do as President of the United States. I believe we can do that through executive order, and I will do that.
Now, if you’re paying attention to the Democratic candidates, you know Bernie is among the top tier. And if nominated, he could give President Trump a run for his money in the general election.
And while I’m no fan of Bernie’s politics or economics… I think he’s right on this issue.
You see, the federal government lists cannabis as a Schedule I drug. So it gets the same treatment as heroin, LSD, and ecstasy. To me, that’s ludicrous; no one has ever died from a cannabis overdose.
And as I’ve written before, the writing is on the wall: Cannabis legalization at the federal level is inevitable.
Nearly all Democratic presidential candidates support some form of legalization or decriminalization. Even President Trump supports giving states the right to choose their own cannabis policies.
And here’s why all of this is important: I believe this legalization trend will unlock $340 billion in capital previously prevented from flowing into the cannabis space.
In fact, we’re already seeing it happen…
Floodgates Ready to Open
According to New Frontier Data, the global total addressable cannabis market (regulated and illicit) is a massive $344 billion.
And Merrill Lynch estimates that non-intoxicating cannabis alone will disrupt $2.6 trillion worth of industries in the next few years.
That’s larger than the alcohol ($232.7 billion), tobacco ($900 billion), and nutraceuticals ($126.3 billion) markets.
Now, this is the definition of a massive, unstoppable trend. And it’s already underway…
According to Viridian Capital Advisors, cannabis firms have raised over $7 billion from 314 capital raises so far in 2019. That’s almost double the total from the same period last year ($3.6 billion from 273 raises).
And from 2016 to 2018, cannabis companies filed about 800 U.S. patents. That’s up from around 530 from 2013 to 2015—a surge of over 50%.
So despite the volatility, cannabis operators and insiders are buying companies… raising money… merging for scale… and protecting their intellectual property.
And $7 billion is just a trickle. There’s still nearly $340 billion of locked-up capital waiting to flow into this space—nearly 50 times more.
This wave of money is just waiting for Congress to flip the switch on legalization. Once it does, the floodgates will open.
And I expect we’ll see it soon…
At the federal level, dozens of legalization bills are weaving their way through Congress as lawmakers finally catch up to public sentiment…
Changing Views on Cannabis
Look, I understand some of you might not be comfortable investing in cannabis stocks. But according to a recent Gallup poll, nearly 70% of Americans are on board with legalizing it.
Now, multiple studies show that cannabis can be an effective treatment for everything from PTSD to anxiety and pain relief. And it’s helping people in ways traditional medications can’t. In fact, I even use CBD oil (derived from one type of cannabis, hemp) to drastically reduce my joint pain.
Plus, you can’t get physically addicted to cannabis. And according to one Harvard report, medical cannabis is a much safer and effective treatment for chronic pain than opiates…
For example, in 2017, 47,600 of overdose deaths involved opioids. And the U.S. Department of Health & Human Services reports that over 130 people died every day from opioid-related drug overdoses in 2016 and 2017.
But again, no one has ever died from a cannabis overdose. And no one is robbing people in the streets to get their “weed” money.
So when you stack up the potential ills of cannabis against tobacco and alcohol, cannabis ranks as the far safer option again and again.
My point is: Don’t let a generational bias stop you from making an enormous amount of money from the legalization trend unfolding in America…
A Long-Term Trend
Now, cannabis stocks have had a rough summer. The Horizons Marijuana Life Sciences Index ETF (HMLSF) is down 8.4% over the last month.
But we expect this type of volatility in an emerging market like cannabis. The key is to see these sell-offs as buying opportunities to get exposure to this red-hot space.
And whether Bernie is elected or not (and I certainly hope he isn’t), the next administration will be faced with a growing number of states enacting cannabis laws.
So as regulatory uncertainty clears up, we expect more capital to flow into the space.
If you want to get your feet wet in this space, consider a small stake in HMLSF. If Bernie somehow wins the Oval Office in 2020, this fund will skyrocket.
And even if he doesn’t, it holds many companies that’ll benefit as regulations continue to loosen in the U.S. under President Trump.
Remember, cannabis stocks are highly volatile. So don’t bet more than you can afford to lose. You only need a small stake for the potential of life-changing gains.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As I mentioned above, the legal cannabis trend is unstoppable. In fact, I just got big news from an investigative reporter with special access to the White House. Starting next month, cannabis could be federally legal in 10 states. And I believe this legalization “test run” will make life-changing gains for those who position themselves now.
And after traveling the globe, I’ve found one tiny, private cannabis company that’ll get a boost from this “test run.” You can get in it for just 50 cents a share today. It’s expected to go public at $1 in the next few months. That’s as close to a guaranteed double as you can get. And I’ll show you how to capitalize right here.