POT STOCKS: Getting started with these ETF's

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February 12, 2021

Pot Stock investing with ETF's

I've been hot on the pot stock trail.

Maybe I'll change my corporate name to Cheech and Chong Incorporated.

Is the POT industry the next emerging growth opportunity or will its profits go up in smoke?

Are investors getting a little too high on pot stocks for their own good?

Ok, ok, now that I got a few of the "I see what you did there's" out of the way, let's get serious. Is marijuana an emerging growth industry? I think it is.

But risks abound. A few years ago, I was all over this story when it first caught fire (no pun intended. Really!) and my thoughts about it were that it's too speculative and too early. I changed my mind recently, as many of my clients can tell by their portfolios.

A few things we know:

There are only six states where marijuana is completely illegal in any form.
The last election saw New Jersey, Vermont, Arizona, Montana and South Dakota vote to legalize.
Most Americans are pro-legalization in some form; medical and/or recreational use.
States are looking for more tax revenue.
There's a lot of money going into pot businesses.

Questions I have:

Could marijuana become just an ordinary commodity like corn? One that seems to offer little opportunity for investment outside of farmers and commodities traders?
Will it become like the liquor industry, relying on brand name and advertising?
Will tax revenues actually materialize?
Will there be too much competition?

I don't have answers to those questions; just a few hunches which are worth the electrons that you're reading this on.

Like you, I have to weigh the cost of missing out on an opportunity vs. investing in a waste of capital.

Pot stocks caught the attention of WallStreetBets on Reddit earlier this week and the stocks shot up. Then they plunged the next day. I hate when that happens because fundamentals don't mean a thing. Maybe fundamentals will never mean anything in this space. And if marijuana is legalized on a federal level, does that mean Amazon will take over the industry?

How to invest in pot stocks was the main topic of my live stream last December; the video replay is below. Before you watch it, I want you to know that the video quality is a little glitchy, which is a rarity for my stream. But the points I wanted to make definitely come across. Check it out if you're interested in learning more about investing in this space.

While you're watching, please subscribe to my YouTube channel.

I live stream every Monday through Thursday at 4:30 PM EST about personal finance, investing, debt management, budgeting, life cycles, financial news, politics, and more. You could catch it live on Facebook, LinkedIn, and YouTube, which is the easiest place to find the replays.

I love hearing from you! Let me know your thoughts about this topic:

MGoldberg@ClientFirstStrategy.com

Thanks and see you next week,

Mitch

How to invest in POT STOCKS using ETF's.

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Thanks!

Mitch

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Mitchell O. Goldberg

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