The Road to Riches Is “Green”
It isn’t every day that we get to witness the birth of a big new market.
Cable television, the dot-com boom and smartphones all rewarded investors with outsized returns when they were new and in their exponential growth phases.
That’s exactly what’s happening with cannabis today.
State by state, we are seeing restrictions lifted for medical and recreational use of this plant after decades of prohibition. While not yet legal nationally, the federal government has decided to largely stay out of the way.
Last year, legal marijuana sales racked up an astonishing $6.7 billion. There’s more to come, however. Multiple states held cannabis-related votes last November, and ballots overwhelmingly favored allowing either medical marijuana or full recreational use.
By 2018, marijuana sales will either go live for the first time or expand in Florida, Maine, Arkansas, Massachusetts, California, Louisiana, Pennsylvania and Ohio.
These states have a combined population of over 100 million people — that’s 100 million people who will either legally be able to buy marijuana medically for the first time or have access for recreational use.
The expanding market will continue to fuel huge growth. It’s estimated that cannabis revenues in North America will top $20 billion by 2021. The total economic impact in terms of related jobs and tax revenues will be even greater.
But not all states are the same from a market standpoint. Some states have large populations, so they have big built-in markets. Other states have smaller populations, so they have smaller markets.
I believe one state will be different, however. At just under 3 million, it has a relatively small population — but it’s a premier tourist destination. Every year, millions of people visit to have a good time.
I’m talking about Nevada. Last year, almost 43 million people visited the state, spending over $35 billion enjoying entertainment ranging from shows to casinos. Nevada has recently made cannabis fully legal in the state.
On the first of July, Nevada dispensaries first opened for recreational sales. Sales weren’t expected to start until next year, but the state decided to allow early sales from already-licensed medical marijuana dispensaries as it works on final rules for new licensees.
The lines were long on July 1. The demand was overwhelming — so much so that dispensaries are reportedly running out of cannabis. Nevada’s governor has even endorsed a “state of emergency” to help fast-track more approvals.
Cannabis sales hit $3 million in their first four days and are expected to reach $30 million by the end of the year. I suspect this estimate will turn out to be on the low end, provided cultivators and processors can keep up with demand.
In truth the new “green rush” that is happening out west could be as big as any industry boom we’ve seen before. That’s including the Gold Rush of ’49, the tech boom of the late ’90s, and the rush for the automobile in the ’20s.
Just like those industry booms made people millions of dollars, the new cannabis boom is poised to do the same. It’s an opportunity that you really don’t want to miss. And as new opportunities arise I’ll be right here to show you how to best profit on America’s “green rush”.
To a bright future,