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This Is the Biggest Catalyst for Marijuana Stocks We've Ever Seen

For investors who thought 2018 was the best year yet for cannabis stocks, 2019 is already off to an even better start. This will be by far the best year yet for marijuana stocks, thanks to one exceptional catalyst.

Pot stocks in 2019 will be propelled by CBD. That's an acronym for cannabidiol. It's one of the multiple chemical compounds in marijuana.

Many people feel that CBD is one of the best pharmacy products to be found in nature. And it's likely to power marijuana stocks for years to come.

Trading Strategies

Why CBD Will Be the Real Winner of Super Bowl LIII

I recently proclaimed 2019 the "year of CBD," and it seems from the mainstream coverage I'm starting to see, folks got the memo.

Early in 2018, Canopy Growth purchased Canadian hemp producer Green Hemp, and it also bought the assets of Ebbu LLC, a U.S.-based hemp company.

For 2019, Canopy is making even bigger moves in the cannabidiol market.

On Jan. 14, the Canadian company announced it received a license in New York to process and produce hemp. In what might be the largest hemp investment to date, Canopy will invest as much as $150 million in its New York operations to produce hemp extracts and hemp-based CBD products.

Not to be outdone, Aurora Cannabis is also getting in on the action.

In May 2018, Aurora boosted its stake in Hempco to more than 50%. For more than 10 years, Hempco has been a pioneer in hemp-based foods. A few months later, it acquired Europe's largest hemp producer, AgroPro.

In the next few months, Aurora will unveil a plan to produce hemp-derived CBD products for the U.S. market, according to Business Insider.

While this news is coming in at light speed, I can't say I was surprised; the passage of the Farm Bill effectively normalizes CBD across the country by making industrial hemp, a major source for CBD, legal on the federal level.

With these reforms, retailers nationwide can sell these products without fear of enforcement action by the government.

That means selling CBD, from coast to coast, to the tune of billions of dollars in revenue for these companies, is the next order of business...

Trading Strategies

This Cannabis Niche Could Deliver Outsized Returns in 2019

If you were following along, then you know that the entire marijuana sector had a pretty great 2018, Canada legalized cannabis at the national level, and California began sales of fully legalized weed for recreational use, to name a few.

But all this will pale in comparison to what's coming in 2019.

In fact, I believe one segment in particular will outperform everything we saw last year combined...