Most pot stock investments won’t make you rich… Focus on this 100% legal cannabis for now… In the mailbag: “The government treats us like chickens in a commercial farm”…


It was the biggest medical cover-up in history…

As we showed you yesterday… the federal ban on cannabis in the U.S. is saturated with Deep State shenanigans.

Don’t worry if you’re still confused about pot’s legal status in the U.S. You’re not alone.

That’s why, today, I (Chris) am handing the reins of the Cut over to my friend Teeka Tiwari.

He’s going to clear up – once and for all – any confusion over pot’s legal status in America… and deliver an ugly truth about most pot stocks.

Teeka will also recommend the 100% legal cannabis compound (cannabinoid) he believes will deliver the biggest profits over the next several years.

Most folks know Teeka as the “crypto guy”…

Teeka saw the wealth-building potential of bitcoin and other cryptocurrencies early on.

And he helped paid-up subscribers of our Palm Beach Letter and Palm Beach Confidential advisories get in on the boom before most mainstream investors.

This has given his readers the chance to make potentially life-changing gains…

For instance, if folks had invested in bitcoin (BTC), ether (ETH), and Monero (XMR) when he recommended them in 2016, they’d now be sitting on gains of 2,068%, 2,898%, and 1,088%, respectively.

And the top open recommendation in the Palm Beach Confidential model portfolio NEO (NEO) is up 10,882% since Teeka recommended it in February 2017.

That’s not a typo. And Teeka says he expects crypto-like gains as demand for CBD surges.

Teeka has spent the last three months immersed in CBD research…

He’s met insiders across North America… including the billionaires behind Bay Street (Canada’s equivalent of Wall Street) to find out what they are investing in.

He sped across Canada (where cannabis is now fully legal nationwide) in his street-legal Porsche race car… visiting the small labs unlocking CBD.

He even took a private jet to visit cannabis farms in Colombia… the lowest-cost producer in the world.

And he explains below, CBD-based products will capture the lion’s share of profits from the legal cannabis boom… at least until the feds lift the federal ban on pot.

The Ugly Truth About Most Pot Stocks

By Teeka Tiwari, editor, Palm Beach Confidential

Today, millions of investors across the world are making the same mistake. And I (Teeka) hope you aren’t one of them…

You see, many people are hungry to get a foothold in the emerging recreational cannabis market. But they’re not sure what to look for. So investors are piling into some of the worst deals I’ve seen since the dot-com boom.

I’m seeing pot stock valuations that make tech stocks look cheap… compensation packages for small-cap executives that would make Wall Street bankers blush… and malinvestment on such a scale it’d make even a Soviet-era commissar hang his head in shame.

Worst of all, I’m seeing hard-working Americans pour billions of dollars into terrible investments – believing that the next round of millionaire-making opportunities will come from recreational pot stocks.

The ugly truth is they won’t…

The competition in the recreational pot industry will be as fierce as it is in the airline industry. There will be a cutthroat race to the bottom on prices – and it’ll bankrupt 90% of the current players in the marijuana space.

That’s not to say all cannabis companies aren’t worth investing in. But you need to invest in the right ones.

That’s why I’ve been focusing on a handful that are working on products in the legal cannabis space. And today, I’ll show you why you need to focus your investment dollars there, too…

Cannabis is confusing. And that means a lot of pot stock investors are making a mistake.

They’re failing to make an important legal distinction…

If you’ve been following me, then you know the cannabis plant creates many types of products.

But most people are familiar with just one: marijuana (also known as pot or weed). It contains tetrahydrocannabinol, or THC. It’s the psychoactive compound that makes people feel “high.”

Now, the federal government lists marijuana as a Schedule I drug. So it gets the same treatment as heroin, LSD, and ecstasy. And because it’s illegal, most big banks won’t touch financing for marijuana deals.

Another type, though, is hemp. It produces a chemical called cannabidiol, or CBD. And unlike THC, CBD doesn’t make you feel intoxicated.

And in December 2018, President Trump signed a farming bill legalizing industrial hemp as a crop. It lifted restrictions on the sale, transport, and possession of hemp-derived products.

Yet there’s a big mistake most investors are making…

They’re focusing solely on weed companies. And while pot is medically legal in 33 states (and recreationally legal in 11), it’s still illegal at the federal level.

Now, I expect the feds to change their stance in the future. But in the meantime, our research indicates that hemp-based products will earn most of the profits from the legal cannabis boom…

CBD isn’t the only cannabinoid with huge medical potential…

Two others are tetrahydrocannabivarin (THCV) and cannabigerol (CBG). And our research indicates these types of cannabinoids will end up garnering most of the profits from the cannabis boom.

If you haven’t heard of them yet, you will. Right now, CBD has the biggest growth potential.

You see, Brightfield Group forecasts CBD sales to grow from $591 million this year to $22 billion by 2022. And Merrill Lynch projects the CBD industry to directly disrupt existing markets worth around $2.6 trillion.

Millions of people already use CBD to alleviate joint pain, arthritis, epilepsy, anxiety, and many other ailments.

In fact, a January 2019 Consumer Reports survey found that over 25% of Americans say they’ve tried CBD. And one out of seven of those people said they use it every day.

THCV and CBG are also showing great promise…

Despite the $72 billion U.S. market for weight loss products, over 300,000 people per year die due to complications from obesity, according to the Centers for Disease Control and Prevention.

It’s the second leading cause of preventable death behind tobacco. As an appetite suppressant, THCV could save millions of lives.

How much would you pay for a THCV product that stops you from feeling hungry without getting you high? In my never-ending quest to manage my weight, I know I’d pay a lot.

Plus, some studies show that when used in conjunction with traditional treatments, certain cannabinoids make cancer cells more receptive to medication.

One study cited by the National Cancer Institute even found that “cannabinoids appear to kill tumor cells.” And animal studies indicate that under certain circumstances, anti-inflammatory CBG can shrink cancer cells.

Last year, people spent more than $130 billion on cancer treatments. So you can see the future market potential of cannabinoids in medicine is huge…

It’s the mother lode in this industry…

Look, recreational pot will end up much like the modern-day alcohol and tobacco industries. A handful of well-financed survivors will thrive off a stable of big brand names.

But since pot is still illegal at the federal level, it’ll be years before these opportunities come to fruition. So it’s nearly impossible to guess which pot stocks will win big at this stage.

Meanwhile, you run the risk of missing out on profiting from the mother lode – non-THC cannabinoids.

That’s why I’ve spent the last three months neck-deep in the cannabinoid market…

I’ve been flying all over the world… talking to the most important CEOs in the cannabis space… and trudging through the jungles of Colombia and the grow rooms of Canada… all to find the world’s best cannabinoid investments.

And next Wednesday, June 26 at 8 p.m. ET, I’ll explain just how big this CBD opportunity is during a free special event I’m calling the Pocket Change Millionaire Summit.

I’ll tell you about a unique way to play this trend. It’s a secret that Wall Street has used for years to make millions. In fact, I’ve been using it for years to explode my own wealth higher.

And now, I’m kicking down the door to bring these deals to Main Street. So come join me. Go here to reserve your seat.

Let the Game Come to You!

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Teeka Tiwari
Editor, Palm Beach Confidential

READER MAILBAG

Yesterday, I (Chris) showed you how the U.S. government turned a thousand-year-old remedy into Public Enemy No. 1 in less than 50 years. And it’s gotten readers thinking…

After decades of demonizing marijuana as being the cause of “blacks will rape our white women,” to genetic damage, and even lost productivity for the economy, we suddenly find a great many governments backing away from this stance (because they see tax revenue, and for all I know, the politicians are investing in weed stocks) and touting the miraculous benefits of marijuana.

I find it hard to consider users to be victims of anything but their own decisions, in much the same way I don’t consider smokers to be victims of some tobacco company conspiracy to delude. For at least the last 40 years, I’ve been hearing about the dangers of smoking, and thus, there is no way I’d consider demonizing the tobacco companies. I see no justification for penalizing everyone who uses, or even deals, for the bad decisions of users.

I know marijuana users, heroin users, hallucinogenic users, amphetamine users, and in most cases, they function reasonably well without harming anyone else. If they harm others, there are criminal laws to deal with that, while if they choose to harm themselves – that is their choice. Essentially, it comes down to whether we are better off like chickens in one of the huge commercial farms, penned in tiny cages until we can be slaughtered, or left free to make our own mistakes as we see fit.

– Al R.

Circling to Tuesday’s Cut, one reader makes the case for why Facebook’s digital currency, Libra, is a Deep State tracking tool…

Facebook and social media have more control over people than drugs ever could. The addiction to pseudo “friends” and “likes” has addicted millions of young people to the social-engineered artificial feedback loop. Ignoring life around them, living life through a filtered and engineered tiny screen.

Facebook’s new “crypto” is just another way to track and monitor people for profit. It’s just a digital fiat currency under centralized control. I am sure the government is thrilled. I believe that a society with no privacy is on its way to destruction.

As for drugs, if someone wants to use them, they will. Legal or not. Nobody who’s not interested in drugs will start just because they are legal. Personal choice and consequences, not central control and totalitarian nannies.

– Eric B.

Should the feds legalize all forms of pot? Will you sign up to use Facebook’s new currency when it launches? Write us at [email protected].

Regards,

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Chris Lowe
June 20, 2019
Lisbon, Portugal

Do You Have What It Takes to Join the Legacy Research Team?

Bill Bonner, Doug Casey, Teeka Tiwari, Jeff Clark, and the rest of our Legacy Research Group experts need your help…

We’re looking for three rock stars to help shape the future of our investment research… and you may be one of them.

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