It’s been a while since we covered pot stocks.
The fact is, after the sector surged several years ago, excitement about it died down during the Trump years.
But now — with a new administration in D.C., more states slated to legalize cannabis, and the idea of federal legalization gaining steam — it’s time to get bullish on it again.
So today, I’ll show you how you to get in on the ground floor of what could be the next cannabis bull market!
Pot Progress Stalls
Nine years ago, Colorado and Washington became the first states to legalize cannabis for recreational use.
Since then, more than a dozen states have followed suit, making marijuana fully legal for nearly half the U.S. population.
But during the Trump administration, things stalled. Trump and his Attorney General both signaled that there would be no path to federal legalization under their watch.
Which is why it should come as no surprise that investors saw almost no profits from this sector over the past four years. In fact, take a look at this chart:
That’s the chart for the Alternative Harvest ETF (MJ) — from the day Trump took office, until early November 2020, when Biden was declared the next President.
During that time, MJ’s price got cut in half!
But here’s the thing…
Pot Profits Surge
Since election day, and especially since Biden took office, pot stocks have begun a major recovery.
You see, not only have more states signaled their desire to pass new marijuana laws — including Crowdability’s home state of New York…
But with Democrats controlling both houses of Congress, many predict we could see full federal legalization as early as this year.
As CNBC reported last month: “About a month after the election, the Democratic-controlled House passed the ‘Marijuana Opportunity Reinvestment and Expungement Act,’ or the MORE Act. This bill would legalize marijuana at the federal level and implement sweeping regulations and reforms surrounding the drug.”
If this happens, it could be a watershed moment — for the cannabis industry, and for investors’ portfolios. In fact, take a look at this chart:
That’s MJ’s share price from November through today…
As you can see, in just about 90 days, shares of this ETF have more than doubled.
And for investors like you, we predict even more pot profits on the horizon…
More Ways to Profit
Sure, there will be plenty of profit opportunities in pot stocks.
But if you’re a longtime Crowdability reader, you know that we prefer to look for opportunities elsewhere.
In this case, that means we’ll be looking to invest in marijuana-related companies before they go public.
Like we always say, the earlier you can get into one of these companies, the more profits you stand to earn.
So here are a few private pot startups you can invest in right now:
- Cannabox — This startup sells “cannabis products in a box” to consumers as a monthly subscription. Each month, a new box of cannabis products and accessories gets shipped to their door. This company has already booked over $11 million in sales. You can learn more about how to invest here »
- Franny's Manufacturing — Franny’s creates and sells a variety of hemp and CBD-based household products. It makes everything from hemp-based soap to edible doggy treats. The company is currently doing over six figures in sales and is expected to grow substantially in the months and years to come. You can learn more about Franny’s offering here »
- Leafwire — Leafwire is a community and social network for cannabis business owners. Think of it like “LinkedIn” for the cannabis industry. The company launched just recently, but already boasts over 36,000 members and six figures in revenue. You can learn more about Leafwire here »
Build a Portfolio
To be clear, we’re not recommending you run out and invest in any of these companies.
Remember, these are early-stage private startups, so you need to conduct significant research before investing in any of them.
Furthermore, we always recommend building a diversified portfolio of these investments…
This way, you can decrease your risk, and increase your chances of hitting a “home run.”
Happy Investing.
Please note: Crowdability has no relationship with any of the startups we write about. We’re an independent provider of education and research on startups and alternative investments.
Best Regards,
Founder
Crowdability.com
