Is This Industry Recession-proof?

From Wall Street to Main Street, fears of a recession are climbing. And with good reason. Trade wars … geopolitics … a nuclear-fueled face-off in the Middle East … they’re all throwing one hand grenade after another onto the trading-room floor.

Here’s the latest Reuters poll on the probability of the U.S. entering recession.

 

The rising red line indicates that more and more forecasters see the U.S. entering recession in the next 12 months.

I don’t know if the U.S. will enter recession. I do know that my subscribers are prepared for it. They own gold and silver miners … dividend-payers and especially dividend-raisers … and they also own select marijuana stocks.

Sure, most marijuana-leveraged stocks are going down with the broad market. For now. I think that could change.

Why? I’ll give you three reasons.

First, there is the seasonal rally in marijuana stocks that I told you about just a week ago. The start of the rally can vary. But whenever it comes, it’s a big one. And you’ll want to be onboard for the big WHOOSH higher.

Second, there is the fact that demand for marijuana — which is mix of demand for medicines and “sin stocks” like alcohol and tobacco — should be resilient in the face of an economic downturn.

Third, revenues of many marijuana stocks are going through the roof.

Here is a list of the top 10 marijuana stocks that are growing their revenues. This information comes from the fine folks at New Cannabis Ventures …

 

As you can see, many of these stocks haven’t reported the most recent quarter yet.

When they do, we could see some real fireworks.

As earnings reports come in … as select marijuana companies report revenues that are growing by 100% … 200% … 300% or more year-over-year … Well, select cannabis stocks could really shine!

And we can forget the trade war with China when it comes to marijuana stocks. We don’t sell cannabis to China. Heck, we don’t even sell cannabis over state lines! It has to go seed-to-sale inside each state. With few exceptions, the growth you’re seeing is happening in stocks that can’t export … yet.

That will change, too.

And that’s why I believe investors will come to see that cannabis is a business that should be remarkably recession proof.

In my Marijuana Millionaire Portfolio, we already own a bunch of these. The others are on our watch list.

Why don’t we own them all? Because our Weiss Cannabis Stock Rankings system doesn’t pick “MOST” marijuana stocks. It picks the winners. It screens out losers and gives you a golden ticket on those cannabis rockets sitting on the launch pad.

Case in point: We just banked a gain of 44% on one position this week. And we held that position just six weeks.

Two weeks before that, we banked a 37% gain on another cannabis-leveraged stock — after holding that position just five weeks.

This is blowing away the performance in the broad market. It is leaving the Dow, the Nasdaq and the S&P 500 in the dust. But just you wait. The best is yet to come.

Along with the things I just mentioned, there are other forces lining up to power marijuana stocks higher. For example …

Legalization Support Hits a New High. A whopping 63% of Americans now say marijuana should be legalized. What’s more, one-fifth of U.S. households now consume cannabis for medicinal or recreational purposes.

Legal Banking for Marijuana Companies Is Coming. One thing holding the industry back is that federally insured banks can’t legally do business with companies that grow pot. But there are new, bipartisan bills in Congress to change that. Senate Banking Committee Chairman Mike Crapo (R-ID) endorses efforts to let banks serve marijuana businesses without being punished.

And what’s more, a top federal regulator, National Credit Union Administration (NCUA) Chairman Rodney Hood, just said regulators won’t punish credit unions simply for working with marijuana businesses that are operating in compliance with state laws.

2020 Elections Could Shift Cannabis into Overdrive. An April CBS News poll showed support for marijuana legalization among Democrats at 72% and Republicans at 56%. That Republican support is up from 42% just last year!

ALL the major Democratic candidates — including Joe Biden — have come out in favor of rescheduling or legalizing marijuana medically, recreationally, or both. President Trump has amazing political instincts. I think he’d rather be on a bandwagon than in front of a steamroller. (I wrote about “Why President Trump Will Legalize Pot” back in April.)

I believe you’d be smart to position yourself in the right stocks for the next cannabis rally. That’s why I have a special offer on my Marijuana Millionaire Portfolio for you right now. This same system has proven to find winner after winner time and time again. And now, it could be yours to command.

All the best,

Sean Brodrick

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One comment on “Is This Industry Recession-proof?

  1. JANET CRAPO August 12, 2019

    It seems my password is no longer valid when I last tried to access your website. I requested a change and got an email that did not help me. Please help me access your site. Janet
    Crapo ( I am a 2 yr. subscriber out in left field).

    Reply