Legal Marijuana’s New Reality

It’s time to rip the Band-Aid off.

The U.S. (the feds, specifically) has screwed the pooch when it comes to supporting legal marijuana.

It’s a bold and unpopular statement, I know. And you can take it as gospel.

Most folks nowadays recognize me as America’s No. 1 pot stock expert. That’s because I was one of the first people to break into penny pot stocks way back in 2016.

My research and the relationships I’ve established in the industry have brought me to grow operations and biotech labs across the globe.

The pot industry’s top brass often call me first, before they announce anything big in a press release.

That’s how entrenched in the space I am.

In fact, I just got back from New York yesterday, where I spent the past few days talking shop with CEOs from some of the biggest names in the marijuana industry.

I’ll expand more on what I learned at that event later. But first, and as I said at the start today… I need to rip the Band-Aid off.

A Full-Blown Bear Market for Pot

A bear market defined by Investopedia is “a condition in which securities [pot stocks, in this case] prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.”

Our proprietary pot index shows a drawdown of over 22% year to date:

Penny pot index

The Gartner Hype Cycle is a graphical representation of a common pattern that arises with each new technology, innovation or industry. The cycle (as it pertains to pot) is as follows:

The Gartner Hype Cycle


Wild expectations led to a meteoric rise for many tech stocks. But a lot of the hype was overblown.

Pot stocks are now falling into a “trough of disillusionment.”

And while we’re confident the long-term trend is still very profitable, it’s time to get real about the legal pot industry and the issue we’re facing right now.

Don’t Blame the Pot Industry… Blame the Feds

The U.S. federal government has really dropped the ball in supporting a growing and booming U.S. industry.

It’s led to a Wild Wild West-style industry that’s constantly clawing back policies because no one took the time to hash out a plan right, like our neighbors to the north have.

I’m not just saying this — it’s a running joke about the U.S. pot industry.

You see, without a standard framework from the federal government that lays out a baseline of checks, balances and regulations, we have each state flying in a different direction. And this is a bit self-serving. Each state would love their legal marijuana framework to be the basis for a federal model.

There’s actually little incentive for states to work together right now.

And this has some unintended consequences hurting the legal pot market here in the States.

Take for example our July 2018 report on California’s corruption problems. In that report we noted that “pot’s new criminal element comes dressed in suits looking for payoffs.”

Here are a few examples…

  • The Apothecarium in San Francisco: The dispensary sued the city, alleging public corruption since they were denied a license over a competitor who was well-connected and made a number of political campaign contributions, reports SF Weekly
  • The Daily Californian reported in June 2017 that Dan Rush, former head of Berkeley’s Medical Cannabis Commission, was found guilty of fraud and money laundering in association with cannabis licensing
  • In Huntington Park, dispensary applicants sued in federal court, alleging that city administrators conspired to award licenses to predetermined companies, according to court documents obtained by Tech Profits Daily.

It would be naive to think California is the only state dealing with this type of corruption.

In fact just last week we learned that Jasiel Correia, 27, mayor of Fall River, Massachusetts, was charged with conspiracy to extort hundreds of thousands of dollars from different legal marijuana operations.

This, along with the new health concerns with vaping and the lack of forethought to get ahead of these issues with federal regulation, means one thing today.

Sentiment is at an all-time low. More pain is coming for many pot stocks short term.

Later this week I will show you exactly what to do to minimize any potential losses and even profit with well-researched and targeted pot stock picks

More on this later in the week.

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, Ray Blanco’s FDA Trader, Penny Pot Profits, 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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