Cannabis Markets

It Pays to Invest in Cannabis Stocks

Editor’s Note: Here at Profit Trends, we’re cannabis believers.

We’ve invested in it and profited from it. We recognize its medical value and embrace the adult-use markets.

But many are still on the fence. They turn up their noses at the mention of the “devil’s lettuce.”

Let me tell you, whether you’re a believer or not, the profits from cannabis companies are out there… and the gains are significant.

Here to set the nonbelievers straight is Associate Franchise Publisher Rachel Gearhart.

Today she’s proving that marijuana stocks are outperforming the broader markets… despite how much they stir the pot.

Read on…

– Rebecca Barshop, Managing Editor


In a recent interview about why he opposed legalizing medical marijuana in his state, Alabama Senator Jim McClendon said, “I guess what bothers me as much as anything is… some time along the way we are going to open a door that will eventually lead to recreational marijuana. I figure as long as I can kind of push against that door the better it will be.”

At the same time, former Speaker of the House John Boehner – another conservative lawmaker who was notoriously anti-marijuana several years ago – recently changed his tune on the topic.

In an interview with Bloomberg earlier this year, Boehner said, “I feel like I’m like your average American who over the years began to look at [the legalization of marijuana] a little differently, and I think over the last five years my position, it has kind of softened up and softened up.”

Based on the feedback we’ve been seeing from Oxford Club Members, politicians aren’t the only ones conflicted about the legalization of marijuana.

But today, I’ll unveil evidence that may soften you up too…

We at the Club pride ourselves on our high ethical standards. But we’re here to help you make money. And, as our data shows, that often means investing in companies that some might consider unethical.

“Occasionally, I receive emails from Members who are upset about a stock recommendation. It may conflict with their political views or sell an unhealthy product or involve activities that are considered a vice,” said Chief Income Strategist Marc Lichtenfeld on a recent call.

“My answer is always the same,” Marc added. “My job is to provide the best investment opportunities regardless of my or anyone else’s politics or biases.”

To illustrate how important removing personal bias is to successful investing, here are two powerful charts that will challenge the way you look at controversial investments (such as pot stocks).

First, let’s look at the performance of five “ethical” companies versus five “unethical” companies.

(And again, people will differ on what makes a company ethical or not. It can be a very subjective distinction.)

The Club’s research team created an Ethical Companies Index consisting of Google parent company Alphabet (Nasdaq: GOOGL), Microsoft (Nasdaq: MSFT), Wipro (NYSE: WIT), Intel (Nasdaq: INTC) and Ford Motor Company (NYSE: F). These companies are all current or past honorees on Ethisphere’s Most Ethical Companies list.

Our research team also created an Unethical Companies Index that includes Nike (NYSE: NKE), Diageo (NYSE: DEO), Nestlé (OTC: NSRGY), Walmart (NYSE: WMT) and BP (NYSE: BP).

At some point or another, each company has been considered “unethical.”

Nike earns a spot for signing controversial NFL quarterback Colin Kaepernick. Diageo is a multinational alcohol company. Nestlé has been accused of using child labor, manipulating uneducated mothers, price fixing and mislabeling (just to name a few). Walmart has been the subject of numerous lawsuits regarding wage discrepancies and gender discrimination. And BP, well, it’s still dealing with environmental issues that stem from the 2010 oil spill from the Deepwater Horizon drilling rig.

Regardless of what landed these companies on this list, their stock market performances are dominating those of their more ethical counterparts…

Chart - Unethical Companies' Stocks Outperform Ethical Ones

In the past year, the “bad boys” are up 39.1% and the more ethical companies are up 19.0%. Comparatively, the S&P 500 is up 16.1%.

And when we look at the newest group of bad boys on the block – cannabis companies – the trend holds…

Chart - New Bad Boy on the Block Beats Them All

Our Pot Stock Index comprised Canopy Growth Corp. (NYSE: CGC), Cronos Group (Nasdaq: CRON), Aphria (NYSE: APHA), Aurora Cannabis (NYSE: ACB) and GW Pharmaceuticals (Nasdaq: GWPH).

Collectively, they are up 128% over the past 12 months.

The moral of the story? Do your own research, and form your own opinions.

Don’t allow the opinions of others to dictate your investing practices.

Sure, many people will agree with McClendon that marijuana legalization is a negative development and the pot industry is unethical.

But others – Boehner among them – see the industry as one that can alleviate suffering and save lives.

A reader named Jan H. recently wrote to Chief Trends Strategist Matthew Carr concerning the cannabis industry. “This is an industry that has the potential to do so much good medically,” she said. “They are treating pediatric cancer with it. People with a legitimate need for chronic pain relief – their lives can be changed.”

We’re not here to tell you what’s right or wrong. Our job is to help Members build and preserve their wealth by sharing the most profitable opportunities.

Where you stand on a company or industry is a matter of your own morality. But before you slap a label on that company or industry, be sure to do your research.

Failing to do so could cost you.

Good investing,

Rachel

P.S. America’s legalization of marijuana is moving quicker than you think. And if you remain on the sidelines, you’re going to end up regretting it. Matthew has identified the No. 1 Pot Stock in America… and he’s willing to share it with you today. Click here now to learn more.