New Pot Stock Data Emerge

It’s no secret that pot stocks have had a challenging year so far in 2019.

But over the past five days we’ve seen new buying invigorate some downtrodden shares.

chart

Source: MarijuanIndex.com

And investors who aren’t still paying close attention to pot’s movements here are making a massive mistake.

In fact, pot stocks are currently following a playbook incredibly similar to another completely different asset that’s been in the headlines recently…

The Bitcoin Correlation

Bitcoin weighs in as the single best-performing asset class of 2019.

Since January, bitcoin has rocketed about 147% higher.

You might be wondering — what do pot stocks and bitcoin have in common? Their performance certainly looks very different this year.

But they’re actually incredibly similar in the way that investors think about them.

In both cases, you have the potential for a transformative shift. In bitcoin, it’s a shift in the financial system.

For pot, it’s a shift in politics and science that’s driving pharmaceutical therapies as well as recreational cannabis products.

Both have seen very similar ebbs and flows to their price action.

Last Year Bitcoin Looked Very Different

While our pot stocks were soaring, bitcoin prices were plunging. In fact, bitcoin ended 2018 down more than 70%. That’s not the only huge sell-off in bitcoin’s history. Just three years earlier, for instance, bitcoin prices started a slide that wiped out about 73% of its value.

But investors who held out had the last laugh when bitcoin prices surged 191% in the year that followed… and 6,093% at bitcoin’s peak in 2017.

What most investors don’t realize is that it’s common for fast-moving, high-growth assets to have jarring corrections along the way up.

By the time they become mainstream, though, those corrections end up looking like blips on the radar.

One group of investors that’s acutely aware of that fact is the institutions.

I’ve recently reviewed new data that show while retail investors have been sellers of cannabis stocks, on average, institutions have been significantly increasing their stakes in cannabis names over the last quarter — much like we have.

In general, assets like cannabis and bitcoin tend to hand investors their biggest gains following a correction of this size.

That’s why the pros are betting on colossal gains in pot stocks right now…

For Technology Profits Daily,

Ray Blanco
Chief Technology Expert, Technology Profits Daily

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Ray Blanco

Ray Blanco is the editor of Technology Profits Confidential as well as Breakthrough Technology Alert, FDA Profit Alert, and Technology Profits Daily. Ray has been with Seven Figure Publishing since 2010. In 2019, his closed positions in Technology Profits Confidential outperformed the S&P500 by 50%.

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