Don't Worry: The "NIMBY" Effect Won't Stop Pot Stocks

It almost never fails: Some bold, new venture with incredible economic potential - nuclear or wind power facilities, a new airport, or, in this latest case, legal weed - is just about set to hang out its shingle (and make a ton of money), when from the neighbors we hear...

"Not in my backyard!"

"NIMBYism." This latest manifestation is happening in Maryland - home of Money Morning and my East Coast base... and a massive potential market for marijuana.

The industry is ready to go, the consumers are ready to buy, and the bureaucrats are ready to okay it. But...

Legal medical marijuana dispensaries in the Old Line State are facing opposition from folks who don't want cannabis sales happening in their neighborhoods.

I've seen this happen before, as it happens, in my backyard in the San Francisco Bay Area.

So let me tell you briefly how it's likely to turn out and what kind of impact this could have on those cannabis-derived gains we've been enjoying lately.

With This Much Profit, They Could Put It in My Backyard

"NIMBY" EffectLike I said, my colleagues at Money Morning are based in Baltimore - so they're seeing this latest bout of "NIMBYism" up close.

They read in The Baltimore Sun on Oct. 24, 2017, some residents of Pikesville, a Baltimore inner suburb, gathered in a hearing room to tell a zoning appeals board that allowing a dispensary to operate in their community would make traffic worse and attract "unsavory people."

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NIMBY protestors are always scared of increased traffic. In other words, money beating a path right to their own front doors...

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Temescal Wellness, a marijuana dispensary with two locations in New Hampshire, wants to expand to a vacant strip mall in Pikesville. The property Temescal wants to occupy is part of a commercial revitalization initiative from Baltimore County, and the county judge granted Temescal the special zoning permit it needed to operate there, reasoning the dispensary would not be harmful to the community.

However, opponents of the dispensary appealed the judge's decision. The folks in Baltimore tell me the neighbors had broad concerns about what a marijuana dispensary would do to the community, and some are worried it will have a negative effect on properties nearby.

A representative of Temescal testified that the dispensary will be safe for the community, and there will be a security guard on site. The representative also said there will be very little cash on hand and that his company works with a bank.

Access to banking might not sound unusual, but with marijuana still illegal under federal law, legal cannabis businesses in the "several states" can have a hard time with services other businesses take for granted, like banking.

Of course, what's completely lost in this recent debate is that Maryland voters legalized medical cannabis - in 2014.

If the dispensary doesn't open in Pikesville, it can, and likely will, find other commercial space near neighbors who can clearly see the benefits.

The Real Danger in These Weed-Driven NIMBY Protests

marijuanaSo the kind of NIMBYism we're seeing in Maryland is almost inevitable, but ultimately, for investors, it's overblown.

If anything, it's a loss for the folks crying "NIMBY." Forbes recently reported that by 2020 the marijuana sector will create more jobs than manufacturing - as many as 300,000. Those employers will go where they're treated best.

It's a classic "tempest in a teacup," and NIMBYism often passes quickly, when folks see that there's serious upside to changes, or when a compromise is struck, or the right palms are greased, or, as might happen with Temescal, when other arrangements are made.

In my experience with the "NIMBY" phenomenon years ago, as medical marijuana was first hitting the markets in the Bay Area, angry neighbors grab headlines, column inches, and local news airtime, but the truth is these highly localized protests are really more of a speed bump.

I'm bringing it up today because the effect certainly isn't limited to Maryland; maybe you've experienced it in some form or another where you live.

Whatever you do, don't let it deter you from making your move and building a legal cannabis portfolio (starting with one of my low-risk fundamental recommendations, of course). If you're not in now, you're at real risk of missing the boat.

The point is, the "NIMBY effect" can temporarily slow, but never stop, the $7.2 billion legal marijuana industry that's growing by 17% a year.

The momentum behind this growth is almost unprecedented. In fact, I've only ever seen it once before: in Silicon Valley, in the 1980s. Indeed, that momentum and profit potential is part of what drew me to the cannabis market.

Pot stocksRemember, as of today, 29 states and Washington, D.C., have legalized medical and/or recreational marijuana in some form or another.

And five more states are voting on it in fall 2018. Forget Democrats or Republicans - I'm betting weed will be the runaway winner in the midterms.

Plus, more Americans than ever think marijuana should be legal. According to a just-released Gallup poll, 64% of Americans support legalizing marijuana. That's the highest that number's gotten since Gallup started asking that question close to 50 years ago.

No matter how hard some may fight it, it's just too late to stop legalization - and pot stock gains of 224%... 378%... and even an exceptional 751%.

Like I said, if you haven't moved into marijuana stocks yet, you could potentially miss the boat before long. My team and I have assembled a "weed investors' bible"; we call it The Roadmap to Marijuana Millions: Phase II. Its 89-plus pages are packed with more than 30 of my favorite plays in the sector, including several blue chips. Click here to learn how to get your copy.

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About the Author

Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...

  • He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
  • He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
  • As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.

This all means the entire world is constantly seeking Michael's insight.

In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.

Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.

And even with decades of experience, Michael believes there has never been a moment in time quite like this.

Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.

To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.

His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.

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