With last month's legalization of marijuana throughout Canada and the rising tide of legalization in the United States over the last two years, pot stocks are primed to advance robustly.
The more legal pot becomes in North America, the more sales will rise.
The end result is a market expected to soar. ArcView Market Research forecasts that spending on legal cannabis could skyrocket almost 250% during the next five years.
The right cannabis stocks are going to soar right along with the spending.
But there are even more catalysts besides legalization...
The first catalyst is the increasing ability to conduct medical research with marijuana, which has risen in tandem with medical marijuana legalization.
Another is the ability of edibles - cakes, barbeque, candy, you name it - to contain marijuana and be sold over the counter in states where cannabis is legal.
But the catalyst we're going to talk about today is the rising trend toward alcohol that contains marijuana.
Some "Big Alcohol" companies are starting to invest in cannabis already, and it's a big sign that corporations throughout the United States want in on the gold rush that legal marijuana is becoming.
Money Morning Defense and Tech Specialist Michael A. Robinson is one of the voices that has been talking about this for a while.
When we see enormous potential for profit, we let you know. That's what we're doing with pot stocks now.
THREE STOCKS: Any one of these cannabis companies could potentially deliver a 1,000% windfall. Click here to learn more...
Firms in the alcohol industry are putting a lot of money into the marijuana sector. It's one of the reasons why Constellation Brands Inc. (NYSE: STZ), a mainstream alcohol company, is moving toward investments in marijuana. It holds an interest in Canopy Growth Corp. (NASDAQ: CGC) and has also indicated it wants to up its stake.
STZ is going to offer $3.8 billion to increase the percentage of CGC it owns to 38%.
Constellation is the maker of well-known liquor and spirit brands like Corona beer, Robert Mondavi wines, and Svedka vodka. They sell globally.
And the marriage between "Big Alcohol" and legal cannabis makes perfect sense. Both marijuana and alcohol serve the same needs, and both industries are heavily regulated with intense scrutiny both from state and federal lawmakers.
As a result, the expertise required to succeed in one sector can also be used in the other.
Plus, Deloitte indicates that 60% of marijuana users likely won't smoke it. Instead, they will either eat it via edibles or perhaps drink it through beverages.
That's why marijuana has huge potential synergies with companies in the alcohol industry.
Constellation is already ahead of the curve.
But we believe other producers of beverages are likely to be moving into the marijuana industry in a big way...
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More beverage companies are getting into the cannabis craze, and it could mean major profits for you.
For example, one of Heineken NV's (OTCMKTS: HEINY) subsidiaries, Lagunitas Brewing Co., has rolled out a new product containing pot. It's a marijuana-infused sparkling water, marketed under the name Hi-Fi Hops. Molson Coors Brewing Co. (NYSE: TAP) is rumored to be thinking about a similar product.
Now, you might be wondering if pot stocks or alcohol stocks that are investing in marijuana are a prudent investment when cannabis continues to be illegal at the federal level.
We do think it's prudent. As legalization continues in the states, we believe voters will increasingly want federal regulators to follow suit. Marijuana provides a tax base and enviable employment in many states, so there are tangible economic benefits not only to state legalization but to federal legalization as well.
The results of investor portfolios are not only going to be prudent, but they're also going to soar. Many marijuana companies are going to see even more rapid growth when full U.S. legalization finally makes it on to the scene.
Big Alcohol and other companies are going to try to get in on the ground floor. That's why we're seeing investment now, before the sector becomes fully mature.
New industries always come with more risks than traditional industries. It's wise to keep that in mind when looking for pot stocks in which to invest.
But having the right pot stocks in your portfolio is a way to stay ahead of the market - and be in the green gold rush.
At the American Cannabis Summit - the first-ever nationwide event for cannabis investors - former Speaker of the House John Boehner revealed why he's going ALL IN on marijuana... and exactly how ordinary Americans can make a fortune from this hundred-billion-dollar industry.
To see a special rebroadcast of this historic event, click here.
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