VIDEO Q&A: Pot Stocks Are Poised to Light Up 2023
Publisher’s Note: Welcome to our latest installment of the Marijuana Insiders Interview video series. This interview was originally published in our premium publication, Marijuana Profit Alert, and we’re making it available as a courtesy to the readers of Mind Over Markets. Below is a condensed transcript; the video contains further details and several charts.
Hello there! My name is Katherine Beem, and I’m managing editor of Investing Daily and editor of Investing Daily Insider. I’m also a long-time believer in the profit potential of the legal cannabis market.
I’m happy to have here on Zoom my friend and colleague John Persinos, editorial director of Investing Daily and our marijuana market expert, to give us some answers.
Well, let’s get started! Those of us who are advocates of marijuana law reform sometimes feel as if legalization on a federal level will never happen. So let’s be honest here: Do you think the federal legalization of adult-use marijuana is on the horizon? And if so, how soon do you think it will happen?
Several bills to legalize marijuana on the federal level are pending in Congress. These federal laws are in various stages of progress; some have been approved by the House but not the Senate; others are still in committee.
During the midterm elections, the widely expected Republican “red wave” turned out to be a pink trickle. MAGA had a bad day at the polls. The GOP got a razor-thin majority in the House and the Democrats retained control of the Senate.
Regardless, the Democrats are very marijuana-friendly, and many Republicans in both chambers have dropped their opposition to pro-marijuana legislation. If one of the several bills to legalize marijuana nationwide makes it to President Biden’s desk, he’ll sign it.
John, what makes you so sure that legalization is imminent?
I used to work as a staffer in Congress and my sources tell me that the top leaders on Capitol Hill want legalization. What these leaders are doing is introducing several bills that will eventually get folded into a sweeping “omnibus” bill that also includes popular non-marijuana provisions, which makes the entire package easier to pass.
Even if they’re personally opposed to marijuana use, shrewd politicians can read the polls. The latest Gallup poll shows that 68% of Americans favor marijuana legalization. Back in 1969, that percentage was 12%. Politicians also can count the tax dollars that marijuana generates. The anti-pot prohibitionists are fighting a losing battle.
What if Congress doesn’t pass the Omnibus bill you foresee?
The states aren’t waiting for Uncle Sam. In the midterm elections, Maryland and Missouri voters passed initiatives to legalize recreational marijuana, as did five cities in Texas. The number of states that have legalized recreational marijuana now stands at 21, which means that nearly 50% of the U.S. population currently lives in states that have legalized recreational marijuana.
More and more states will legalize weed in the months and years to come. Federal and state regulators also are making it easier for government and Big Pharma scientists to research the medical benefits of marijuana.
Cannabis stocks have had a really rough time of it in 2022, falling heavily from the sector’s peak in the first quarter of 2021. Do you think pot stocks have the potential to meet, or even eclipse, those earlier gains?
Yes, marijuana stocks have taken a beating, but they’ve been caught in the downdraft of the overall bear market. Fact is, marijuana sales have soared this year. Pot sales tend to be recession and inflation proof.
And look what happened during the worst of the coronavirus pandemic; during individual and business lockdowns, demand for weed was off the charts. Marijuana has become a consumer staple. Pot stocks are undervalued and poised for explosive gains in 2023.
Let’s talk numbers. How much do you think investors who get in now stand to make?
They can make exponential gains that crush the broad equity indices. I’ve seen certain pot stocks rack up triple and quadruple gains, in a relatively short amount of time. But the key is selectivity. Many pot stocks are intrinsically sound, but many others are overly risky penny stocks that are doomed to crash and burn.
That’s why I launched by new investment service, Marijuana Profit Alert. By using my proprietary stock screening system, I’ve been picking the best pot stocks and adding them to the publication’s portfolio. And my readers get weekly updates about new picks, as well as updates on how my existing picks are faring.
A lot of cannabis investors believe that psychedelics like psilocybin mushrooms and LSD are the next frontier for profits, after marijuana. What potential do you see here?
Nowadays, a lot of mainstream consumers can claim psychedelic experiences. From soccer moms to corporate executives, the growing trend is to imbibe psychedelics to foster wellness and boost creativity. In fact, micro-dosing “magic mushrooms” and LSD has become a big fad among super-rich Silicon Valley hipsters.
Maybe the world isn’t quite ready for a second Summer of Love. But psychedelic mushrooms and LSD are no longer just recreational. They’re becoming Big Business.
Medical research increasingly confirms the efficacy of psychedelics to treat physical and mental ailments. Entrepreneurs, consumers and investors are jumping aboard the psychedelics movement, an emerging mega-trend that’s reminiscent of the mainstreaming of marijuana.
This may seem like a silly question, but it’s one I hear all the time. Do you need to be a cannabis user to understand the market enough to be an effective investor?
[Laughs] Goodness gracious, no.
Whether you use marijuana or not is beside the point. Whether you think marijuana legalization is beneficial or immoral also is beside the point. The legalization train has left the station and no politician can stop it.
Some people refuse to invest in so-called “sin stocks,” within industries such as tobacco, firearms, alcohol, or gambling. Perhaps you count marijuana as a sin. That is certainly your right. But if you’re motivated to earn money, know this: the marijuana industry is a multi-billion-dollar juggernaut and it’s only getting bigger.
And your new investment service, Marijuana Profit Alert, is there to help subscribers find these profitable opportunities we’ve just discussed.
That’s right. My new publication covers news and trends in the marijuana industry. I also speak on a regular basis with industry insiders, whether they’re on Capitol Hill or in corporate suites or on Wall Street.
I crunch a lot of data, put it through my proprietary screening system, and provide specific, actionable advice on the best investments in the marijuana and psychedelics sectors. I strive to strike the right balance between risk and reward.
Thanks for your time, John.
To learn more about Marijuana Profit Alert, click this URL.
John Persinos is the editorial director of Investing Daily. You can reach John at: email@example.com