Tuesday, October 29, 2019
What would you guess is the fastest-growing sector today?
Artificial intelligence? 5G? Cannabis? Cloud computing?
If you guessed cannabis, you’d be right. As The New York Times recently reported, it’s the “fastest-growing industry in America.”
By next year, analysts predict the U.S. cannabis market could be worth $22 billion — and globally, it’s soon predicted to reach $500 billion.
And for once, everyday investors like you are positioned to reap the biggest profits.
Let me explain.
In this Sector, Individuals Have the Advantage
When it comes to making money from the financial markets, it’s rare for individual investors to have an advantage over big institutions.
But with cannabis, that’s exactly what’s happening.
You see, despite the increased legalization at the state level, pot is still illegal federally. And that simple fact prohibits institutional investors from investing in most cannabis stocks.
I’m talking about institutions like mutual funds, pensions, and hedge funds — the big investors that usually get in on the ground floor of emerging sectors and gobble up the biggest profits.
As Todd Harrison of CB1 Capital confessed to Bloomberg, “[This is] the only time I’ve ever seen in my 30 years on Wall Street where individuals can front-run institutions.”
OK, so individuals like you and I have an advantage here…
But how can you capitalize on it?
Following (Pot) Patents to Profits
Well, as I shared last week, to identify the most profitable new investment opportunities, I like to use a resource that’s “off-the-beaten-path”:
Patent filings!
This is one of the “tricks” I use to help my clients predict movements in stock prices 12-to-18 months before they happen, and to earn massive returns.
And as it turns out, patents confirm that a bull market in cannabis lies directly ahead.
Consider this:
(If you’re interested, you can track them here — I already set up a search for you.)
Furthermore, my latest search reveals that hundreds of new pot patents are about to be granted. Currently, 313 applications are awaiting approval. You can track them here.
The thing is, if you dig into the data, you’ll notice something very interesting:
A heavy concentration in one specific sector…
Big Pharma Jumps In
I’m talking about the pharmaceutical industry.
To show you what I mean, check out this chart…
Source: Reuters
This information gives us a big clue about where we should be looking to invest. For example, look at all the pot patents from familiar names like Merck and Pfizer.
And it makes sense, too. The most obvious way to patent pot is by developing new chemical compositions, just like a biotech company would develop and patent a new drug.
In fact, when it comes to patenting novel formulations — and turning them into billions of dollars in sales — no one is more experienced than big pharma.
Furthermore, investing in big pharma companies can be less risky. Consider big pot patent holder, GW Pharmaceuticals (GWPH)…
In a market where investors recently suffered losses of 50% or more on “recreational” pot stocks including CannTrust and Hexo, GWPH has shown remarkable strength and stability.
Going Beyond “Reliable Performers”
Based on its patents, GWPH promises to be a reliable performer for years to come.
But if you’re interested in learning about some cannabis-related investments that can go far beyond being “reliable performers,” tune in again tomorrow…
That’s when Matt will introduce you to an area of the cannabis market that’s experiencing blazing-fast growth…
The type of growth that can deliver huge profits to investors like you.
So stay tuned!
Ahead of the tape,