Published on February 12 2018

How to Profit in One of the World’s Most Volatile Markets

By Justin Spittler, editor, Casey Daily Dispatch

333% returns.

That’s what the average marijuana stock handed investors between last July through January 9. The best ones soared even higher.

It was an absolute mania.

Then, the market turned on a dime. The typical marijuana stock plummeted 15% over the next three days.

At that point, it looked like the boom might be over.

But just 11 days later, marijuana stocks started heading higher.

Then, without warning, the market crashed again. This time, the average marijuana stock plunged 28% in less than two weeks.

Long story short: Marijuana stocks are volatile. They’re probably some of the most volatile stocks on the planet. But that shouldn’t stop you from investing in them.

In fact, as I’ll show you today, now is a great time to speculate on marijuana stocks

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•  And that’s because the marijuana industry’s exploding…

The U.S. marijuana market is already a $6.5 billion industry.

This makes it one of the fastest-growing industries on the planet. But it’s still early days for this market.

It’s expected to grow to $50 billion by 2026. That would make it bigger than the American craft beer and chocolate markets combined.

This is the kind of opportunity investors dream about. And yet, many people want nothing to do with the market. That’s because the industry is shrouded in uncertainty.

There’s no Pfizer, Philip Morris, or Anheuser-Busch of the marijuana world yet.

Because of this, the average investor doesn’t know where to start when it comes to investing in pot.

More importantly, they’re worried that the market could implode overnight.

•  That’s because marijuana is still illegal at the federal level in the United States…

It’s actually a Schedule I drug. This means that the feds consider it more dangerous than cocaine or methamphetamine. It’s absolute lunacy.

Then there’s Jeff Sessions, the U.S. attorney general and notorious drug warrior.

In fact, he once called marijuana “slightly less awful” than heroin. He also believes “good people don’t smoke marijuana.”

•  This is why so many marijuana investors are skittish today…

They sell at the first whiff of bad news. They’re worried the feds will shut down the industry.

But that’s an irrational fear. It employs more than 165,000 people. Marijuana sales are also a huge tax revenue generator for states where it’s legal.

In short, Sessions couldn’t kill the U.S. marijuana industry if he tried.

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•  I know because I’ve been to the front lines of the marijuana boom…

I lived in Vancouver, San Francisco, and Denver. I went to these “marijuana cities” to get a firsthand look at the industry.

I toured multiple marijuana grow operations, a marijuana chocolate factory, and even a state-of-the-art marijuana research and development (R&D) facility in Colorado.

Here’s a photograph of me at Seed & Smith, a world-class marijuana growth facility in Denver, Colorado.

This “boots on the ground” research has helped me understand the industry inside and out. And that’s because I didn’t just see these projects—I spoke with the people who run them.

And like me, these folks aren’t worried about a federal crackdown. Instead, they’re marching full-steam ahead with their businesses. They’re buying equipment. They’re hiring workers. And they’re raising capital.

This tells me that the marijuana industry is here to stay.

•  I’m not the only Casey Research analyst who thinks this, either…

Crisis Investing editor Nick Giambruno agrees. He wrote in a recent note to his subscribers:

Just a few weeks ago Vermont legalized recreational cannabis, too. New Jersey is also set to legalize recreational cannabis by this summer. And the governor of New York has expressed an interest in legalizing recreational cannabis as well.

Meanwhile, a handful of other states are quickly moving to soften their cannabis laws. The cat is out of the bag… widespread legalization in the US inevitable.

Nick’s right. It’s too late for the feds to shut down the marijuana industry. The pushback at the state level would be overwhelming. It would blow up in their faces.

Keep this in mind if you own marijuana stocks: Take a long-term approach. And don’t let a little volatility shake you out of your positions.

You may even want to treat pullbacks as opportunities to buy world-class marijuana stocks at deep discounts. After all, Doug Casey is famous for saying, “Volatility can be your best friend.”

Regards,

Justin Spittler
Tulum, Mexico
February 12, 2018

P.S. Casey Report editor E.B. Tucker also believes the marijuana industry is here to stay… and is presenting a massive money-making opportunity. He recently discovered three marijuana stocks set to soar in the months ahead. You can learn more by watching this new video presentation.


Chart of the Day: Gold’s Next Big Move

By Justin Spittler and Joe Withrow

Gold looks like it’s about to break out.

To understand why, look at today’s chart. You can see that gold’s been trading sideways since 2013. That’s an extremely long consolidation period.

In that time, gold’s been getting ready for its next move. Now, that move could be to the downside or the upside. Only time will tell… But all signs point to gold ripping higher.

After all, gold’s up 9% since the start of 2017. It’s now bumping against major resistance at around $1,350. If it breaks above that, gold could be off to the races.

We’re not the only Casey analysts who think gold is poised to rip higher.

Casey Report editor E.B. Tucker also thinks it’s only a matter of time before gold breaks out. He wrote in the December issue of The Casey Report:

Gold is four years into being stuck between $1,050 and $1,350. When something stays stuck in a range for a long period of time, it tends to build up pressure for a big move one way or the other.

This is a massive opportunity for speculators. And that’s because a big move by gold could trigger a “rip your face off” rally in gold stocks.

So, consider speculating on gold stocks. Also, remember that mining stocks are speculative, so treat them as such.

—Justin Spittler and Joe Withrow

Editor’s note: Owning gold and speculating on gold stocks are also great ways to prepare and profit from a market crash. But they’re not the only ways…

Next week, we’ll be publishing a special morning series in the Dispatch with more strategies on how to protect yourself during a crash. Stay tuned.


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