New Signs of Life in This 'Left For Dead' Commodity
Big news on a controversial trend… Canada is set to vote on legal marijuana tonight… New signs of a life in this 'left for dead' commodity… A 'boots on the ground' report from China…
We'll begin today with an update on one of the most controversial stories we've discussed this year...
It's a story that has likely led to more cancellations and angry subscriber e-mails than any other we've covered... but one that is also undoubtedly among the biggest potential opportunities in the markets today.
We're referring to the explosive growth of the legal marijuana industry.
As we discussed back in March, marijuana is quietly becoming a legitimate commodity... and one that is rapidly gaining support across the U.S. and around the world.
Already, more than half the states in the U.S. allow some sort of legal marijuana use. And for the first time ever, an overwhelming majority of Americans now support marijuana legalization.
Like it or not, it is now likely just a matter of time before marijuana is legalized on the federal level.
But that's not why we bring it up today...
You see, our neighbor to the north is about to beat us to the punch...
Tonight, the Canadian Senate is set to vote on Bill C-45, which would legalize recreational use of marijuana across the country. The bill easily passed the Canadian House of Commons in November and is expected to do the same in the Senate today.
Barring any unexpected delays, Canada will soon become the first developed country – and just the second country in all – to fully legalize marijuana.
This is important for a couple of reasons...
First, it would dramatically expand the legal marijuana market practically overnight...
Data from accounting and advisory firm Deloitte suggest nearly two-thirds of Canadians who currently use marijuana would immediately buy from legal retailers, even if it cost more to do so. All told, the firm expects the law could create more than $4 billion in legal recreational marijuana sales in just the first year alone.
But more important, if sales (and tax revenues) are anywhere close to estimates, this move is likely to ramp up political pressure in the U.S... where the potential market for legal marijuana is multiples larger than in Canada.
And again, regardless of your feelings on this trend, the investment potential is staggering...
This market is still in its infancy. Even the largest publicly traded Canadian companies in the industry control only a tiny fraction of this market today.
Despite the rally in these stocks over the past year, the "big money" has yet to be made.
Of course, investing in marijuana stocks is just one of the ways investors could earn life-changing money from this trend...
If you're interested in learning more, we'd encourage you to check out our brand-new book on the subject: The Marijuana Industry Insider's Playbook.
This book distills the insights, experience, and expertise of dozens of industry insiders – real people who have already made a fortune in this industry – into a "blueprint" for successfully investing in this once-in-a-lifetime opportunity.
You can find a lot of "research" out there on how to make money in the legal marijuana boom, but we are sure you've never seen anything as in-depth and detailed as the Insider's Playbook.
You'll learn the best ways to invest in marijuana companies... the keys to profitably trading pot stocks... even how you can start a marijuana-related business of your own – no matter where you live today. Click here to learn more.
Elsewhere in the commodities markets, a 'left for dead' asset is showing signs of life...
Last summer, our colleague Ben Morris – editor of DailyWealth Trader – noted that a long-term bottom could be forming in uranium.
In short, despite the backlash following the 2011 Fukushima disaster in Japan, Ben explained that nuclear power remains a critical source of the global energy supply. This is unlikely to change anytime soon... which means demand for uranium isn't going away either.
Meanwhile, prices had plunged nearly 70% over the previous five years to less than $20 per pound. At that price, producers were losing nearly $40 on every pound of uranium they produced.
As Ben noted at the time, this was unsustainable... and it's exactly the kind of situation that often marks a bottom in the cyclical, "boom and bust" resource sector.
Prices bottomed a few months
Unfortunately, the rally didn't last long... Prices fell back to near their previous lows this spring. And investors once again gave up on the sector.
But uranium bottomed again by April, and has been quietly moving higher ever since...
This week, prices broke out to a fresh six-month high. And unlike last winter, no one is excited today. As Ben and DailyWealth Trader analyst Drew McConnell explained yesterday, this could be great news...
Recently, the price action in [uranium] has lulled most traders to sleep. But that's a good sign...
It shows that traders are losing interest... and that the bear market could be giving way to a bull market...
If the sentiment starts to shift, we could see a massive bull market. Gains of 100% or more are possible.
As they noted, the fundamental case continues to strengthen. Producers continue to cut production, which will inevitably lead to higher prices. And a recent report suggests the U.S. is planning to ramp up for the industry. More from Ben and Drew...
Last week... Bloomberg News released the details of an important government memo...
The memo shows that Trump administration officials are making plans to order electric grid operators to buy electricity from struggling coal and nuclear plants. The administration has not approved the plan yet. But it would fit with previous comments about supporting these energy sources.
Since those announcements, the price of uranium has jumped about 4% – from $22.55 per pound to $23.50 per pound. Uranium stocks are climbing, too...
Of course, these recent moves don't guarantee we'll see higher prices immediately...
But they're further evidence that the long bear market is ending, and a new bull market is approaching...
This trade has required patience and may continue to require patience... But the upside is dramatically larger than the downside risk. So we want to hold on.
Uranium and uranium stocks are starting to climb. This could be the beginning of a massive bull market... And gains of 100% could just be the start.
Don't miss out the next big move higher.
Speaking of Ben...
He's currently traveling in China with Steve Sjuggerud, several colleagues, and a number of Stansberry Research subscribers.
They're all there for this year's Asia Investment Opportunities Conference Series... and while Chinese stocks are outside his typical research focus, he was so impressed by the experience so far that he penned a special essay for readers of our free DailyWealth e-letter yesterday.
Whether or not you're personally investing in Steve's True Wealth China Opportunities recommendations, we urge you to check it out. You can access it right here.
New 52-week highs (as of 6/6/18): Apple (AAPL), AllianceBernstein (AB), Automatic Data Processing (ADP), CME Group (CME), WisdomTree U.S. SmallCap Dividend Fund (DES), Fidelity Medical Equipment Fund (FSMEX), ETFMG Prime Mobile Payments Fund (IPAY), Lindsay (LNN), Monsanto (MON), Microsoft (MSFT), Ralph Lauren (RL), ProShares Ultra Technology Fund (ROM), ALPS Medical Breakthroughs Fund (SBIO), Under Armour (UA), VF Corporation (VFC), Verisign (VRSN), and W.R. Berkley (WRB).
In today's mailbag, opposing views on China... and more thoughtful notes on "teaching vs. learning." As always, send your questions, comments, and concerns to feedback@stansberryresearch.com.
"What you write and observe about China is exactly what I see, but even more in depth. My wife is Chinese... Americans misunderstand China and the Chinese people, big time. The government is another topic.
"I have been to Chengdu and
"I was recently forwarded [your DailyWealth] article 'I Came Without Expectations... Now I Have Some' and was immediately alarmed by some of the feedback Ben Morris wrote on. Having lived in China for five years (and not the westernized version, however the true China version), I'm concerned Ben is only looking at the Tier 1 cities (Shanghai, Beijing, Guangzhou, and Shenzhen) which are less than an eighth of their overall population. If he ventured into any Tier 2 city and below he would find the ghost cities, poverty everywhere, and many other factors that typically plague developing countries. I'd do some investigating in the actual China where laws are stricter, Internet regulations are more severe, and people are much poorer before making recommendations on investments. Thanks!" – Un-paid-up reader Melyssa
Brill comment: Steve's True Wealth analyst Vic Lederman just addressed this issue in this morning's edition of DailyWealth. It's true that while major cities like Beijing and Shanghai are already among the most developed in the world, the rest of the country still has a long way to go. But as Vic explained, this too is rapidly changing... and as is often the case in investing, if you wait until these problems are solved to invest, the biggest opportunities will be long gone.
"Regarding 'there's no teaching, only learning,' I think what most people are missing is the idea that good teachers are invaluable in the learning process. But even so, it is still learning, not teaching. No matter how great a teacher is, you can't teach someone who doesn't want to (or isn't ready to) learn." – Paid-up subscriber Gabriel B.
"You can lead a horse to water, but you can't make him drink. What you can do though is to salt his oats – and surely that is what Porter does! Horse, eat salted oats, and meet water! Live a wonderful day." – Paid-up subscriber Nick A.
Regards,
Justin Brill
Baltimore, Maryland
June 7, 2018