Marijuana stocks have been absolutely crushed in 2019.
In the last month alone, some pot stocks have lost 10% of their value or more.
Many are down more than 50% since peaking earlier in the year. Just look at the ETFMG Alternative Harvest ETF (NYSE: MJ). This ETF represents a large swatch of the cannabis industry. Since peaking in mid-March, MJ has dropped nearly 52%.
The bloodbath is enough to shake the confidence of even die-hard believers in pot stocks.
But not me.
I will never be shaken from my belief in the long-term prospects of cannabis stocks.
The size of the market combined with the transformative nature and multiple applications of cannabis make pot stocks a must-own for any portfolio.
But I understand if the short-term volatility is too much.
For some, owning pot stocks might be a wild ride not worth taking.
Still, if you are a believer in the global growth explosion of cannabis, there is a reasonable way to invest without the crazy swings in share price.
While pot stocks sank over the last 30 days, one name in the cannabis industry soared nearly 10%.
How could that be?
The answer is diversification of risk.
A typical pot stock has a one-track business model. It's usually either manufacturing cannabis or selling it on a retail basis.
That puts a company at risk to the volatility you see in pot stocks today.
As an alternative, I found a stock in the sector that makes money by renting industrial facilities to a wide variety of companies in the cannabis industry.
Ever better, this stock takes those profits and distributes them to owners in the form of a healthy dividend.
I'm talking about a REIT obviously, a pot REIT.