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December 14, 2017 | Cannabis 2018 Preview

Sean Brodrick

Sean is the natural resource analyst for Weiss Group. You can read his thoughts on gold, oil, cannabis, uranium and other natural resources at EdelsonInstitute.com

I’ve written a lot about cannabis in 2017. I’ve guided my Marijuana Millionaire subscribers to heaps of money. So listen to me now, when I say 2018 could be the most awesome year yet for cannabis investors. The Marijuana Megatrend is in full swing.

Act soon, and you stand to make a fortune.

First, let’s hear from Bob Dylan …

“Come gather ’round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You’ll be drenched to the bone
If your time to you is worth savin’
Then you better start swimmin’ or you’ll sink like a stone
For the times they are a-changin’.”

These words written by Bob Dylan in 1963-’64, encapsulated what was going on in the country at the time. Big changes. You could adapt to those changes (“start swimmin’”). Or you could refuse to adapt (“sink like a stone”).

Today, I know many old-time investors who refuse to recognize the Marijuana Megatrend for what it is. They consider marijuana “the Devil’s weed.”

That’s an actual quote from someone in this industry I respect deeply. Someone who despairs of my investments in Satan’s cigarettes.

And I sympathize. Hell, I’m an old-time investor. I will match you coot for old coot, and grump for grumpy old men. But I can see the change going on. And I can recognize the opportunity in front of me.

And I’m going to shake every tree for my subscribers. Be it gold, lithium or marijuana plant.

Big Changes in 2018

There are two ground-shaking events happening in 2018.

In January, California will legalize the recreational use of marijuana. This is only the seventh-largest economy in the world. Larger than India! And sure, plenty of Californians who want to use marijuana are using it now. Nonetheless, this opens the door to all sorts of entrepreneurial activity.

Then, on July 1, Canada legalizes recreational marijuana use on the Federal level. Canada is the world’s 10th-largest economy. Importantly, federal legalization means access to all sorts of finance, banking and markets.

Sure, Canada legalized medical marijuana in 2001. Cannabis companies operate openly there. But federal recreational legalization is expected to boost cannabis tourism. A lot. Along with taking a big part of what is now the black market and turning it into a taxable, regular market.

Estimates of how much cannabis might be consumed in Canada are growing. In August 2016, Deloitte suggested Canada would consume 600,000 kilograms in 2018. More recently, the Parliamentary Budget Officer projected 650,000 kilograms.

But now — NOW — a research group out of Colorado, MPG, says Canadian demand for marijuana flower equivalent could exceed 900,000 kilograms next year.

That’s 992 tons for us folks below the 49th parallel. In other words, that is a LOT of pot.

California is much bigger, so you can imagine the wave of legal sales there. Unless the feckless legislators in Sacramento put taxes on marijuana too high. I wouldn’t put it past them.

California and Canada are just the beginning. Michigan and Vermont are going to legalize. Missouri, Utah and Oklahoma will vote on medical marijuana. Others may follow.

More Fuel for the 2018 Marijuana Megatrend

Here are some more stats that speak to a Marijuana Megatrend.

  • 64% of Americans support legalizing marijuana for recreational use. That’s a new record.
  • Taxes are winning over one state after another. Revenue for the first six months of 2017 in
  • Colorado, Washington and Oregon — the first three states to legalize marijuana for adult-use — ran 33% ahead of 2016.
  • In the U.S., legal marijuana sales will hit $9.7 billion in 2017. That’s up 33% over last year.
  • Analysts predict the market to hit $24.5 billion in sales by 2021, despite continued federal prohibition. More than double this year’s sales!

Sure, sure, Attorney General Jeff Sessions hates marijuana. Famously, one of his former co-workers claims Mr. Sessions said he was fine with the KKK until he found out they smoked pot. Sessions says he was joking. Sure.

But heck, his own interns are questioning his stance on pot. Congress rebuffs his attempts to crack down on cannabis. The tide is rising around Jeff Sessions. Not that I expect Mr. Sessions to start swimming. As Bob Dylan would say, he’ll “sink like a stone.”

Importantly for U.S. investors, the U.S. cannabis market is still in its infancy. Here’s a chart from Marijuana Business Daily showing two of the largest Canadian pot stocks compared to two of the largest U.S. marijuana-linked stocks.

I’m not saying Terra Tech and Kush Bottles will get as big as Canopy Growth and Aurora Cannabis. But I am saying federal prohibition is a weight on their growth.

Once that weight is lifted, however …bang! Zoom!

The end of marijuana prohibition is coming. Maybe not in 2018, but soon. Smart investors will be positioned for it. My Supercycle Investor subscribers are already riding the next leg of the Marijuana Megatrend. To join them, click here.

All the best,

Sean Brodrick

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December 14th, 2017

Posted In: The Edelson Institute

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