The Greatest Market to Emerge Since Dot-Com
It's become such a big deal lately that there's really no other way to describe it than to compare it to the other world-changing industrial trend that's taken place in our lifetimes... the internet.
Twenty years ago, a web of globally networked computers transformed the way we communicated, the way we received and processed information.
It launched the global economy into a new golden era and fundamentally evolved human society.
Today it's something completely different that's rocketing to the top of economic relevancy, and yet, on many levels, the implications are similar.
Some think it's over-dramatic to be comparing the emergence of the legal cannabis industry to the rise of the internet, but I tend to disagree.
Both industries rose suddenly and uncontrollably. Both changed, disrupted, or rendered other industries obsolete.
Both seemed to come out of nowhere, but in reality had decades of groundwork and preparation already laid before critical mass was achieved.
It's Not Common to See Even One Event Like This in a Lifetime... But Two?
To work, the internet needed more than just the technology. It needed users — millions of them — who were not just willing to spend more and more time with their computers, but were itching to do so.
In the mid-’90s, that's exactly what the internet got, and with it, demand for services, applications, and vendors soared.
It became the biggest economic force to hit modern man since the advent of the internal combustion engine.
Cannabis, like the internet, needed more than just the technology that legitimized its previously stigmatized and universally prohibited active ingredient... It needed millions of willing users, not to mention voters, to effect the necessary legislation.
Today, the cannabis industry in all of its forms has millions of users, with millions more waiting in the wings.
When it first got started, the internet was essentially just email and news delivered by a handful of content providers.
Today, it's an entire universe, offering everything imaginable in terms of services and experiences.
Cannabis, similarly, was once synonymous with one application: recreational drug use.
Today, the applications range from pharmaceuticals capable of potentially curing Alzheimer's and Tourette's to dietary supplements to building materials and fabric.
It All Goes Back to Money
Much like the internet of those manic early days, today's cannabis market is enjoying a seemingly inexhaustible flood of venture capital.
And this is why:
With state legislation finally loosening restrictions on the cultivation, sale, refinement, and research, the economic impact of cannabis and its many related industries is mushrooming.
The best part? There's still a long, long way to go before this engine runs out of steam.
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Room to Grow, From Coast to Coast
As of last November, only about 60% of Americans lived in jurisdictions where some degree of marijuana prohibition reform had been achieved.
That said, to date, only eight states and Washington, D.C. have embraced complete legalization, while the federal government continues to view cannabis as a controlled substance.
That means the potential for growth of this already exploding new investor market is still enormous.
There are still more jurisdictions to conquer, more potential users to reach, more applications to master, and more products to bring to commercialization.
How much more? Well, according to a study done in 2016 by the Arcview Group, of the $53 billion spent on cannabis and cannabis-derived products in 2016, $46 billion was still transacted illegally.
Meaning that despite the huge progress made on a state level with decriminalization and legalization, only 14% of the total demand has been effectively answered through legal supply.
Combine that with the market for new drugs that simply never had a chance to exist before new legislation opened the research floodgates, and the future potential of cannabis as a product, and as a raw material, is enormous.
So enormous that it makes the job of the investor daunting... if not seemingly hopeless.
There are hundreds of companies coming up with products, processes, and applications designed to compete in and hopefully disrupt this emerging industry.
Things are exciting, but also chaotic.
There's Money to Be Made... And Lost
Today's hit could be tomorrow's stock horror story of the year.
Like Arena Pharmaceuticals (NASDAQ: ARNA), which has lost close to 90% over the last couple years, while the rest of the market grew several-fold.
Or Insys Therapeutics (NASDAQ: INSY), which lost more than 75%, dropping from more than $43/share to $10 since the summer of 2015.
But these flops have been more than balanced out by the eye-popping gains that today's cannabis industry investors have seen from the standout stocks.
Companies like AXIM Biotechnologies (OTC: AXIM), which rallied from $0.80 to more than $13.50 since last October...
Or Corbus Pharmaceuticals (NASDAQ: CRBP), which has gone from $1.30 last January to more than $10 this March.
Hits like these are numerous and hard to believe, but they're all as real as they get, and there are more to come.
Many more, with gains that make even these look pale in comparison.
Big Opportunity Comes With Big Risk
The big question remains: how do you tell the home runs from the strikeouts?
Well, you could go at it alone, or you could turn to one of today's foremost authorities on the cannabis industry.
My longtime colleague Jimmy Mengel has been studying cannabis investing with PhD-caliber intensity since long before it became the hottest buzzword in all of venture capitalism.
He's been to conferences all over the continent and has befriended some of the most influential innovators operating in this sector.
As the topic grew and became more prominent, Jimmy made the decision to commit an entire newsletter to it.
His new publication, The Marijuana Manifesto, is today's foremost authority on the business of cannabis and cannabis investing.
There simply does not exist a more focused, better-informed source of actionable information.
Want to know how to get the next triple-digit winner from this explosive new market?
You can roll the dice, or you can click here and get Jimmy's latest pick for free.
Fortune favors the bold,
Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.
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