Legal Marijuana Industry Report
Weed stocks were called “the new crypto” because they hedged stocks better than crypto for a period. In reality, the argument looks more like, both of these were defenses against stocks but crypto rallied with gold in 2018. So it is more like gold rallied and crypto is digital gold, which is why crypto rallied to defend against stocks drop. However, money also fled crypto in favor of weed stocks for further gains – by smarter investors.
Whats included in the report:
Global Industry Outlook
Tilray (TLRY) and Canopy Growth Corp (CGC) company, market and stock evaluation
Key Insights and actions taken based on the evaluation
Key theoretical perspectives and positioning
Weed is a multi-purpose commodity that can be used in food and beverages, pharma, entertainment, and many other sectors, which means it could even outperform gold in terms of returns. Weed can outperform gold because it’s a new industry and it’s expected to grow 10x in the next 7-8 years.
I. Industry Evaluation
II. Key Industry Players Evaluation
- Corporate Profile – TLRY and Canopy Growth Crop
- Market Share, Size, Performance and revenue
- Stock Evaluation
- Advantage and disadvantage of the industry
- Theoretical Perspective
- Evaluation and Positioning
- Key Predictions
Legal Marijuana (Pharma and growers) will behave similarly to gold and crypto (defensive asset classes) but somewhat different. The idea is gold is a commodity that is mined, crypto is a commodity that is mined. Weed is also a commodity but which is grown. So economically speaking, it makes sense that weed grower performance increases during times of economic contraction too. This because the consumption of alcohol, tobacco and marijuana products is increased during periods of economic distress as a stress relieving method. Moreover during times of economic contraction, such as the recent COVID-19 pandemic has resulted in to the reduction of medical expenditure on key diseases such as cancer and HIV (and treating patients suffering from these diseases). The legal marijuana solutions including THC and CBD products show to significantly reduce TIPN (taxane-induced peripheral neuropathy) which affects 67 percent of women undergoing breast cancer treatment. Legal marijuana products have also shown increasing appetite which might lead to improvement in immune system for HIV patients.
Given their cyclical nature, in times of market turbulence, these stocks are likely to rise in value. As opposed to growth stocks, these are likely to grow rapidly during 2-3 years of economic contraction and then decline when money enters into stocks that grow during economic expansion, such as tech stocks
The allocation percentage to Legal Marijuana stocks can vary between 10%-15% depending on the life-cycle of the investor, risk tolerance, investment horizon and the investment objectives.