TRUMP vs WEED: Here’s the Clear Winner…

It’s time to start taking the pot business seriously.

We are in the early stages of a marijuana boom. Full federal legalization will happen in five to seven years, according to some experts. It’s not going to be a smooth ride. But legal weed is set to make some brave businessmen (and investors) very, very rich.

The 2016 election season officially opened the floodgates. A wave of legalization has already crashed over the West Coast. California, Oregon, Nevada and Washington have all officially legalized recreational marijuana use. Back east, Massachusetts and Maine also joined the ranks of the high flyers.

But here’s the $7 billion question:

Will President Trump ruin their plans?

“Marijuana dispensaries and manufacturers are increasingly worried that the Trump administration will crack down on enforcement of federal laws that ban growing and selling marijuana — reversing the president’s stance during his campaign and potentially upending what has become a $7 billion market,” CNBC reports. “The anxiety was sparked by surprise comments from White House spokesman Sean Spicer last month that the government would likely step up its enforcement of drug laws.”

The news that the new administration might crack down on pot has some folks worried. After all, the Feds have been known to bust up legal pot shops in California on a whim. That ain’t good for business…

You’re probably aware that a farcical medical marijuana program has been around forever in the Golden State. For years, you could visit your local quack with all sorts of imagined ailments and snag a “green card” that would give you access to the dispensary of your choosing.

But while pot is nothing new to Californians, legal pot is a very new concept to the markets.

It’s early. But the numbers are impressive. Legal marijuana could generate $1 billion a year in taxes alone in California, according to some estimates. Advocates have pushed to have this money go to substance abuse education and prevention. Incentives like these are a huge help in pushing through legalization legislation.

There will be bumps along the way. But neither the Trump Train or the Feds will be able to stop legalization from spreading. There’s simply too much money at stake…

The weed industry is a tricky one. It’s highly regulated. But the industry insiders we’ve spoken with said they’re not going away—and that their businesses are just getting stronger.

Why?

For starters, over half the country is in support of legalization. About 60% of swing states are leaning in favor of legalization.

Pound for pound, dollar for dollar, cannabis does more for local jobs than any other regulated substance. You can’t cross state lines. For instance, legal weed sold in Colorado must be grown in Colorado by people who live there. You can’t outsource these jobs.

Finally, as these businesses mature, they will split into recreational and medical focuses. Recreational marijuana will consist of consumer-driven lifestyle brands while medical companies will develop new products targeting treatments and health benefits of the plant and its chemicals.

Despite the hurdles and government threats, we’re going to see more entrepreneurs getting their companies listed on major exchanges. Full legalization on a federal level will happen in just five to seven years.

Over the next couple of years, we’re guaranteed to see a lot more green on the map… no matter what the new administration says.

My colleague Ray Blanco has been on the marijuana beat for months. Now, he tells me his research has boiled down to a system with the ability to spot some of these fast-moving marijuana stocks before the herd.

These few tiny companies (some are dirt cheap) could go on to make ordinary investors a mint…

Click here to reveal this latest research…

Sincerely,

Greg Guenthner
for The Daily Reckoning

The Daily Reckoning