why POT IS IMMUNE to economic woes

| September 14, 2015 | 1 Comment More

If you’re worried about your stock portfolio, then marijuana might be the answer. Not because it will help you “chill out” about your financial situation, but because most analysts believe that the pot market will be largely immune to economic downturns because of its unique mix of “quasi-medical” and “quasi-recreational” uses. Derek Paterson, chief executive of marijuana production and retail at Terra Tech, added that thanks to this unusual combination, pot “is going to withstand the market more so than a company dependent on high-end consumer goods.”

Paterson noted that although the data picture on pot is constantly changing thanks to expanding legality, the market value of pot actually held up or even increased during economic turbulence over the past 10 years. Now that pot is legal in many states, real estate investors are actually heavily recruiting marijuana distributors to their commercial builds. “In LA, every strip mall had a dispensary [even when] everything else was vacant,” noted Jeremy Carr, CEO of Blaze Now, a pot industry data collection company. He added, “Real estate agents relied on them when it came to building out warehouses” during that time.

Furthermore, as marijuana moves off the black market and into the legal market, history indicates that the industry is set for a solid decade of growth. “Whenever you’re moving an established industry from the black market to the legal one, there is significant growth from migration,” Peterson observed. Thanks to this relative immunity to economic downturns, long-term growth potential, and the attraction of a new, legal, recreational option for users hoping to relax without alcohol, the industry will likely thrive regardless of the state of the economy. Do you think pot is a good investment? Should it have been legalized?

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About the Author (Author Profile)

Carole Ellis is editor in chief of the Bryan Ellis Investing Letter. Under Carole’s leadership, the Bryan Ellis Investing Letter has grown to over 700,000 subscribers, making it one of the largest real estate newsletters in the world. Each day, Carole directly impacts the daily thinking and conversations of real estate investors worldwide by providing thought-provoking analysis and commentary on news topics relevant to serious real estate investors.

Carole has a strong background in research and in the management of respected publications. She holds a degree in English Literature from the University of Georgia, and has substantial research experience in plant biology. She is the former editor of and writer for the University of Georgia’s Research Magazine. She’s also the author of hundreds of articles and multiple books and home study courses published under the names of her clients, many of whom are well known, highly respected real estate entrepreneurs as well.

Carole makes her home in Kennesaw, Georgia with her husband Bryan and 4 children.

Comments (1)

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  1. Paul C. Bobo says:

    Is marijuana legal in any State? Is marijuana a controlled substance according to the FDA? Has medical marijuana received FDA approval to be sold as a medicine?

    Does the State have the right to make laws that contradict Federal law which the Supreme Court has ruled to be legal?

    If you believe that marijuana can be legal because the State made it legal, in spite of the Federal Law, or States Rights, then Pot can be legal. As such, then it may be a solid investment as per the article. However, if some politicians get elected at the Federal level who want to contest the superiority of Federal law over State law, then the investment risk could be extremely great.

    Just food for thought.

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Category: Financial Markets