From our Canadian neighbors to the north, to Mexico to our south, to Europe and Asia, governments are rapidly recognizing the benefits of cannabis for medicinal and other purposes. This will impact how many people live their lives. It is also a huge new product market where we can invest. Imagine having new options to try for managing that nagging back pain. Or being able to get more than four hours of sleep a night. Or taking the edge off after a stressful week. All can be done without getting drunk or high. But only if you want to. The decriminalization and legalization of cannabis often draws comparison to the end of Prohibition of alcohol. But it’s much, much bigger. The Prohibition analogy sells the cannabis revolution short. Cannabis lets users relax and unwind in different ways – ways that don’t leave you with a hangover or groggy the next day. So the markets that it will take share from are much bigger than simply alcohol, which measures more than $100 billion annually. For example, maybe you smoke a cigar, or pipe, or use cigarettes to take a break. Tobacco itself is another $100 billion annually. How about health and wellness? In the U.S., it is estimated that we will spend $88 billion for “nutraceuticals” by 2021. This is the collective name for vitamins, lotions, creams, powder, and other products that are not specifically medicine.
And speaking of medicine, folks in the U.S. spent an estimated $360 billion in 2018 at retail pharmacies... filling the pockets of drug companies and pharmacy benefit managers. Cannabis will take a part of this as well. Humans have been using this plant no matter its legal status for more than 1,000 years. We believe legalization is a game-changer – both in our lives and for our wealth. But you need to know how to use it and how to invest in it. Mistakes in either your use or your investments can lead to “volatility.” The Prohibition analogy Our initial skepticism of so called “pot stocks” is lessening. We are not late to the party. It is only getting started. There were five major milestones that occurred in 2018 that won’t be undone. First, Canada legalized cannabis for adult use nationwide. Then the Farm Bill in the U.S. was signed into law. This legalized the hemp industry, a cousin of the cannabis plant, nationwide. Third, the U.S. Food and Drug Administration (FDA) approved Epidiolex for use in people with two forms of rare epilepsy. Then five cannabis companies listed their shares for trading on major U.S. exchanges: two on the Nasdaq and three on the New York Stock Exchange. sells the cannabis revolution short... The upside is much, much greater.
32
March 2019
Made with FlippingBook - professional solution for displaying marketing and sales documents online