This Boom Is Going Mainstream
'Reefer madness' is back... This boom is going mainstream... What you need to know about this popular health trend... The recap of our first-ever Cannabis Investing Event comes down soon...
Editor's note: As we mentioned yesterday, the Digest team is in South Carolina for our annual Spring Editors' Conference.
While we're away, we're featuring a special series from our colleague Dr. David Eifrig.
As a longtime student of both the markets and medicine, "Doc" has been closely following the rapid growth of the legal cannabis industry.
Yesterday, we learned why he has recently become interested in investing in this trend for the first time. In today's essay – originally published in his free Health & Wealth Bulletin – Doc shares his unique perspective on the potential health benefits of this controversial plant...
Reefer madness hit the 2019 Oscars...
No, I (Doc Eifrig) am not talking about the psychedelic and fear-mongering 1930s propaganda film designed to terrorize parents about the "dangers" of marijuana.
Earlier this year, Hollywood's biggest stars received gift bags at the annual awards ceremony containing the latest fad – products infused with the key compounds of cannabis. That includes cannabidiol (CBD) skin care products, as well as chocolates infused with tetrahydrocannabinol (THC). (Maybe the actors wanted a less painful way to get through the hours of pomp and circumstance.)
But across the country, shops selling CBD-laced products (like lattes and cookies) have been met with a crackdown from federal regulators. Back in February, the U.S. Department of Health and Human Services confiscated thousands of dollars' worth of CBD-infused goods from different shops.
Maybe you've seen an increase in products in your area, too. In Baltimore, we've seen CBD advertisements in local vape shops and a bakery that makes CBD-infused donuts.
The boom in the cannabis industry hasn't gone unnoticed...
We've gotten a ton of e-mails from our readers asking us about CBD and marijuana. It's a lot to cover, but we wanted to share some of the basics today.
Two of the main active components in cannabis are THC and CBD. Both of these compounds act the same way... They mimic a transmitter in our bodies called an endocannabinoid. These transmitters – and the plant-based versions – bind to receptors in our bodies.
These receptors control things like mood, appetite, memory, and pain. There are two types – CB1 and CB2.
CB1 receptors are in our brains, organs, and nervous systems. CB2 receptors are in our immune systems.
THC is often called the stronger "psychotropic" compound. That's because it binds strongly to CB1 receptors in the brain. It causes the high you experience from marijuana and THC-laced products.
But CBD binds weakly to these transmitters. It also interferes with THC, so if you ingest or inhale both, you won't get as much of a psychoactive effect as with THC alone. In other words, CBD won't get you high, but since it dulls pain receptors and alleviates anxiety, it still acts on your brain.
CBD oil primarily comes from the hemp plant, not from marijuana...
But both hemp and marijuana belong to the Cannabis family of plants.
Hemp has very little THC. So it's a better plant option if you're just after the CBD oil. Hemp is also protected on the federal level under the Farm Bill, which was finalized last year. It's the first time hemp has had a separate exemption from other cannabis plants.
Hemp used to be legal until World War II, when certain states began to outlaw its growth due to a rising fear of marijuana dangers. Then in the 1970s, President Richard Nixon made it illegal on the federal level, as he banned all types of the cannabis plant. We finally saw a turning point for hemp just this past year.
The sale and possession of any hemp-derived products (including CBD oil) is now legal... but as our new health care analyst Thomas Carroll has pointed out, it's still up to individual states to regulate these products. That explains why some states, like New York, are cracking down on edibles, while other states allow these businesses to flourish.
CBD on its own, especially as CBD oil, provides milder health benefits without the mind-altering effects...
Although there aren't many clinical studies, there are a few that show CBD oil lowers anxiety. In fact, some folks in our office give their dogs CBD-infused treats to help them calm down. Researchers hypothesize CBD binds to serotonin receptors, which could explain the mechanism of action. They work similarly to drugs like BuSpar and Abilify, which work to boost the effects of traditional antidepressant drugs.
Similarly, CBD also reduces the number of seizures in children with a complicated epilepsy illness called Dravet syndrome. These are kids who experience many seizures that don't respond to typical epilepsy drugs.
We've also seen some studies on CBD treating pain, high blood pressure, and even Parkinson's disease. And as for THC, there's a synthetic THC drug called Marinol. It's legal and approved to treat nausea and appetite loss due to chemotherapy.
We're going to follow the cannabis story both from a medical perspective and an investment opportunity...
Our view right now is cautiously optimistic.
The reason is that we still want to see a lot more long-term and larger randomized trials. What's more, although CBD seems safe and appears in so many products, it also carries with it some side effects like diarrhea, vomiting, and issues with liver function. So until those are addressed (likely with better formulations and more standardized dosages), we'd urge caution.
And remember, if you do go for a CBD latte or donut, don't overdo it... mixing the oil with food or beverages can slow the absorption rate. That means you might not realize it's kicking in and could take too much by accident.
But even with our caution, I am excited about Stansberry Research's newest service, Cannabis Capitalist...
If anyone understands the nuances of the cannabis industry, it's Thomas Carroll.
Thomas has spent years as a health care analyst and brings a new perspective on the boom he sees coming in cannabis investing. He thinks we might see a day soon where companies stop growing hemp and mass-produce the CBD in a laboratory environment.
We're just now at the forefront of this happening... and he has some great insight into how companies stand to profit from the new technology.
Editor's note: Thomas officially launched his new Cannabis Capitalist service during our first-ever Cannabis Investing Event last week.
If you missed it, you can still get a brief recap of all the highlights – and learn more about a special introductory offer to try Cannabis Capitalist for yourself – right here.
But if you're interested, please don't delay... This opportunity will only be available until tomorrow night, Wednesday, April 3, at midnight Eastern time.
New 52-week highs (as of 4/1/19): Automatic Data Processing (ADP), BHP (BBL), Ionis Pharmaceuticals (IONS), Ingersoll Rand (IR), MarketAxess (MKTX), Anglo American (NGLOY), O'Reilly Automotive (ORLY), SPDR S&P Dividend Fund (SDY), Wells Fargo – Series W (WFC-PW), and W.R. Berkley (WRB).
In today's mailbag, two more readers share their experiences with legal cannabis. As always, send your general questions, comments, and concerns to feedback@stansberryresearch.com.
"Hi... I became a Stansberry Alliance Member at the beginning of December. I also got off opioids at around the same time. This is because I started using cannabis.
"I had been in a horrible accident where I had gone through a tour bus windshield, and landed on the ground about 30 feet in front of bus. This happened in Switzerland in 1997. And no, I got absolutely zero in payment for medical bills or pain and suffering. I had a brain injury, and was in a full body brace and then a wheelchair. I have been in and out of the hospital for surgeries for years.
"In the last couple of years I feel like I'm starting to get my life back. I still have lots of medical problems, but my brain is starting to clear from use of all those opioid medications.
"I'm hopeful that using your services I will be able to make up for some of my lost wages for the last 20+ years. I had left my other job to start my own business when I was injured, and didn't have disability insurance." – Paid-up Stansberry Alliance member M.P.
"I have been against [cannabis use in the past]. But my daughter lives in Colorado and has had the ability to get involved in the market. She gave me some cannabis oil patches, which are legal where I live. I have been diagnosed with lung cancer... I am glad to see the company finally making a stand. I am sure morality about its use has a lot to do with the hesitation." – Paid-up subscriber R.J.
Regards,
Dr. David Eifrig and Justin Brill
Bluffton, South Carolina
April 2, 2019