Here’s What Could Drive Pot Stocks Higher in 2019
2018 is closing on a very rough note — this year is on track to finish worse than any other year since the financial crisis of 2008.
But as we’ve talked about time and again, there’s a big disconnect between what’s going on in the stock market and what’s going on in the legal cannabis industry this year.
As we barrel toward 2019, we’ve booked some big victories for legal cannabis.
A handful of new jurisdictions voted to approve legal recreational or medical cannabis in 2018. Scores more opted to decriminalize pot. These wins didn’t just happen here at home on Election Day — they took place around the world.
Meanwhile, cannabis companies enjoyed stellar momentum as Canada opened up legal recreational sales this fall and major American companies took substantial investments in a couple of key cannabis plays.
We took advantage of that too, scoring massive wins like 404% gains on Canopy Growth back in October and 174% gains on MedReleaf back in May.
Overall, though, we didn’t do much selling in 2018.
That’s because I believe that much bigger opportunities exist in the pot space for 2019 and beyond…
Even though markets remain turbulent in the final days of the calendar year, the stage is being set for massive tailwinds in the legal cannabis industry in the months ahead.
We’ve already talked about some of them.
For instance, New York’s governor recently made public his plans to get legal pot passed in the Empire State in 2019. New Jersey is likely to see legalization for recreational weed next year too.
States like Illinois, Connecticut, Minnesota and New Mexico will all have governors who favor making pot legal in some capacity in the new year.
Internationally, moves are happening too.
Just within the last 24 hours, Thailand has moved to legalize medical marijuana and cannabis research, becoming the first Southeast Asian country to make the move.
The country’s National Farmers Council thinks that cannabis could become a major cash crop for the country, bringing in more than $3 billion a year.
Without a doubt, patience will continue to be a virtue for cannabis investors in 2019, especially as Mr. Market finds his footing in the early weeks and months of the new year.
But in the long term, investing in the growth of legalized cannabis may just be the closest to a sure thing I’ve come across in my career.
We’ll continue to be cautious in this environment. But the correction stocks have experienced in 2018 is sure to bring some extraordinary buying opportunities for cannabis stocks that aren’t anywhere close to their peak potential right now.
It’s an exciting time to be a cannabis investor!
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