Cannabis Capitalism: Bring Home the Green – Investing Daily – Investing Daily

By John Persinos November 1, 2022 Stock Market Investing
This week, I’ve been re-watching episodes of The Sopranos when mob boss Tony Soprano said something that struck home:
“It’s good to be in something from the ground floor. I came too late for that, and I know. But lately I’m getting the feeling that I came in at the end. The best is over.”
It occurred to me that a lot of investors feel just like Tony. They think they’ve missed the boat on millionaire-making opportunities. But it’s never too late to find an emerging trend that’s worthy of a ground-floor investment.
Which brings me to a still-young industry that’s on track to explode with money-making momentum in 2023 and beyond. I’m referring to marijuana.
Yes, marijuana. Not all disruptors are in the tech sector. This once-demonized substance is increasingly legal and popular around the world, with enormous room for growth as more governments remove restrictions.
Below, I’ll lift the curtain on a special event that explores the opportunities of “cannabis capitalism.” It’s your chance to be in something from the ground floor.
But first, let’s take a look at the latest market action.
The Federal Reserve on Tuesday started its two-day policy-making meeting, during which the U.S. central bank is expected to announce a 75 basis point (bps) hike in interest rates, setting the policy-rate target between 3.75% and 4%. The U.S. 10-year Treasury hovers at around 3.9%, reflecting projections of a higher terminal rate next year.
Meanwhile, China is tightening its coronavirus restrictions even further, fueling fears of a global economic slowdown. Beijing’s zero-COVID policy is taking its toll. The Caixin manufacturing PMI for China came in at 49.2 on Monday, representing a contraction in factory activity for October. The consensus had called for a reading of 50.
The disappointing manufacturing reading for China is another factor weighing on crude oil prices. China is the largest annual gross crude oil importer in the world. Oil traders are expecting energy demand destruction due to geopolitical turmoil, contracting economies, and the hiking of rates by central bankers around the world.
Even though OPEC+ recently curbed production, the U.S. benchmark West Texas Intermediate has stayed below $90 per barrel, showing that the cartel has only so much power over the supply-and-demand dynamic in the global oil markets. Recession fears are reining in crude prices, regardless of the efforts of OPEC+ leaders Saudi Arabia and Russia to punish the West.
The economic news hasn’t been positive in Europe, either. According to a report released Monday by Eurostat, Euro-area inflation posted a new record in October at 10.7% (see chart).

As you can see from the chart, the major driver of inflation on the Continent is energy. The Russia-Ukraine war has wreaked havoc on energy supplies, with Russian President Vladimir Putin intent on using his country’s energy exports as a weapon in retaliation for Western sanctions.
The U.S. dollar continues to strengthen; investors are flocking to the greenback as a safe haven. This trend causes global financial pain, for many reasons I’ve amply explained in previous articles.
Read This Story: Why a “Strong” U.S. Dollar Is Both a Blessing and a Curse
The Fed’s meeting dominates the financial headlines this week. The robust labor market has given the Fed political cover to adopt an aggressively hawkish stance this year, because the central bank can argue that the economy is resilient enough to weather higher rates without lapsing into recession.
The betting on Wall Street is for a 75 bps hike, but as always, you should listen carefully to the Fed’s commentary, especially Fed Chair Jerome Powell’s press conference at the conclusion of the two-day confab. If history is any guide, Powell will opine off the cuff and cause consternation in financial markets. You should expect Wednesday to be a volatile trading day.
On Tuesday, U.S. stocks closed lower, after the Bureau of Labor Statistics reported that U.S. job openings unexpectedly rose in September. The number of vacancies in the U.S. climbed by 437,000 to 10.72 million last month, up from 10.2 million in August and beating expectations of 10 million. That trend could translate into higher wages, as companies compete for workers. A hotter economy equals a more hawkish Fed.
That said, the major indices, especially the Dow Jones Industrial Average, posted big gains for the month of October, signaling that the bear market has bottomed and it’s time to position your investments for the next bull run. Every portfolio deserves exposure to the cannabis sector.
Minting the next class of millionaires…
Marijuana is becoming as easy and legal to buy, as beer or chewing gum at your local grocery store. The investment ramifications are vast.
That’s why on Tuesday, November 1, I’m holding a special investment Town Hall, called “The Marijuana Millionaire Countdown.”
As the U.S. midterm elections loom on the calendar, I’ll explain the little-known reason why federal legalization of marijuana is inevitable…and why a slew of states are on the cusp of creating new state-legal markets. According to analysts, new state markets are likely to boost U.S. legal cannabis sales to $72 billion annually on a national basis by 2030.
During my online Town Hall today, I’ll reveal the one simple marijuana trade that could dump piles of cash into your brokerage account, before the midterm votes are even counted. There’s still time to jump aboard this event. Click here to grab your spot!
John Persinos is the editorial director of Investing Daily.
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