Canadian CANNAINVESTOR Magazine May 2017 - Page 52

Retail Investor's Perspective


An industry that is ideally and uniquely suited to the Retail Investor. A recent article appearing in the Chicago Tribune with respect to the forthcoming legalization of recreational marijuana in Canada may remove whatever skepticism remains:

Imagine for a moment that you could go back in time to 1932, the year before the 21st Amendment to the U.S. Constitution was ratified, repealing Prohibition (and the 18th Amendment). What might you do with the knowledge that the production, transport and sale of alcoholic beverages was about to be legalized? What sort of investment opportunities might you find? How would you deploy your capital? Fast-forward to 2017. Might we be in a similar, if not exactly parallel, situation regarding a different investment opportunity? … Famed investor Bill Miller observes that investors who seek to beat the market need a substantial “active share” — the amount by which their investment holdings differ from their benchmark. Marijuana stocks are not in most major indexes, and they might provide just that sort of difference. Things are likely to get interesting very soon.

The Chicago Tribune article is worth reading as it expertly and rationally offers persuasive reasons as to why the US Federal Government’s rescheduling of cannabis is inevitable. Another reason may be found in the language used by groups such as the Canadian Arthritis Society which has applauded our government’s proposed legislation. Arthritis in Canada is no different from Arthritis in the US or elsewhere for that matter. The medical research is mounting and the US Federal rescheduling of cannabis may just be a matter of time.