One of the most exciting upcoming events for investors right now is still the eventual transition of illegal marijuana sales to a legal market.
While some kind of legal marijuana is available to purchase right now throughout most of North America, the majority of cannabis sales are still taking place underground. In 2018, New Frontier Data projected that there was over $86 billion in cannabis sales in North America.
Only $10.8 billion of that was legal, meaning more than $70 billion - or 81% - in sales was conducted in the black market.
That's a lot left on the table that should be trickling into the legal market. That's why legalization is crucial for long-term cannabis investing.
To make a dent in the illegal markets, you need two things. One is education. When more people learn about why it's better to turn to safe, regulated, and legal markets, you send cannabis consumers to legitimate dispensaries instead of dark alleys.
And the second thing that will put billions of dollars into the pockets of legal businesses and push stock prices higher is what I want to talk to you about today...[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
An Open Letter to Regulators
With about seven out of every eight dollars spent on marijuana in North America going to illegal sources, it's clear that consumers are still turning to the illicit markets for some reason.
I would even go so far as to say that, beyond the traditional distinction between total prohibition, legalization for medical use, and legalization for recreational use, there should be another distinction between broad legalization and legalization that is so restricted that it holds back the industry from becoming anything more than a novelty.
I'm talking about giving cannabis consumers the options they want when legalization rolls out and taxing cannabis products fairly so there is no reason to ever turn to the black market.
For example, medical patients in Florida originally were not allowed to buy smokeable cannabis. If you're terminally ill and find that's the best way to consume medicine, then you should have had the right to do that the minute Florida legalized medical marijuana.
If you wanted to vape in Canada, you should have been able to do that when full legalization went into effect in October 2018.
Fortunately, there are signs regulators and politicians are finally getting the message.
Major Steps in the Right - and Profitable - Direction
For example, in Oklahoma, doctors can prescribe cannabis for any medical reason.
And I think Michigan is setting a good example for other states looking at recreational legalization. Not only is its cannabis excise tax limited to 10%, but its regulators have worked hard to support the industry in its early growth phase.
This is especially important because, according to The Wall Street Journal, politicians in New York are considering taking the initiative on legalization again.
In fact, Gov. Andrew Cuomo (D-NY) has vowed to legalize adult-use cannabis in 2020. When - because it's now only a question of when and not if - New York joins the recreational club, the state is expected to haul in $3 billion in sales.
Obviously, every cannabis investor wants Cuomo to make this happen and add another "green" state to the map.
Outside of Cuomo legalizing cannabis for his state in 2020, voters in New Jersey, Florida, and Arizona are anxious to get to their polling places and put a check next to "Yes" on their ballots for legalizing adult-use cannabis.
In fact, with 32 states approving medical cannabis and 70 cannabis legalization bills already in Congress, full federal legalization could be just around the corner.
And before that happens, you're going to want to claim your stake in this $10.8 billion industry. Learn how with the only comprehensive guide to cannabis profit potential in the world.
Secure your copy of "The 2020 Pot Profits Roadmap" now...
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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.