After April 1, 2019, cannabis stocks plummeted over 60% for the year, leaving many investors at a loss – both for words and for money.
But many are hoping the market will turn around this year, and are thus hoping to capitalize on the current low prices of major cannabis stocks.
If you’re looking to invest in the cannabis industry, you’re probably wondering what stocks are likely to bounce back after such a year, and where the best place to invest your money is.
That’s what the 2020 American Cannabis Summit talked about – and even more.
Read on to find out more about what was covered in the 2020 Summit, what it was really about, and whether or not cannabis stocks are worth investing in.
What Is The American Cannabis Summit?
The American Cannabis Summit is a video presentation put on by the folks over at the National Institute for Cannabis Investing.
This year, Mike Ward, Danny Brody, and Tom Gentile teamed up with quarterback-turned-investor Joe Montana to bring you some valuable information regarding cannabis stocks and investing tips.
Mike Ward is the publisher of Money Map Press. If you’re into the investing scene at all, chances are you’ve heard of him – he’s a pretty big name in the industry.
Tom Gentile is referred to as “America’s number one pattern trader.” He’s developed some of the most high-tech pattern-spotting trade software on the planet, and he’s had huge success in his investment and business ventures.
Danny Brody is an investor specializing in the cannabis industry, and has led multiple cannabis-related companies through highly successful IPOs.
Joe Montana is most well known for being the quarterback of the San Francisco 49ers, but he turned to investing after his retirement. And he was quite successful – investing in companies like Pinterest before they even went public.
So, it’s safe to say that these guys are experts in their own respects, and when combined can offer a wealth of knowledge related to cannabis stocks and investing tips.
To get access to the American Cannabis Summit video, you have to purchase a membership to the NICI, which is really what the whole video is about. It’s essentially a sales pitch, albeit one that does offer some valuable knowledge and information.
What is the National Institute for Cannabis Investors?
The National Institute for Cannabis Investors was started after recognizing the demand for information about cannabis investment opportunities.
The Institute combines the knowledge and research of some of the top experts in the industry to provide hard-to-find information to investors.
The way they do that is through a variety of newsletter subscription services, like:
- Cannabis Profits Daily: a free email newsletter with investing tips, news, and investment opportunities
- NICI Membership: costs anywhere from $39-$129
- Cannabis Pro Insider: costs $1,950 and focuses on IPO opportunities
- Cannabis Venture Syndicate: claims to be the “#1 resource for cannabis investors” and costs a whopping $4,950
To view the American Cannabis Summit, you have to be an NICI member. There are three different subscription tiers:
- Gold Level: a 1-year subscription that costs $39
- Diamond Level: a 2-year subscription which costs $79
- Platinum Level: a 2-year subscription with a bonus which costs $129
With all three tiers, you get the NICI membership for at least a year, plus:
- The 1,000% Portfolio
- The 2020 IPO Hotlist
- The 1,000x CannaBusiness
- Tom Gentile’s Cannabis Options Masterclass
The only extra that I can see from the signup page is that you get the 2020 Pot Profits Roadmap with the Platinum Level Subscription.
In fact, the only difference I can see from the signup page is that the Gold level automatically renews and the Diamond level doesn’t.
That means that, if there’s no other hidden extras that they aren’t telling you about, it’s actually cheaper to get the Gold level and let it renew for a second year (costing you $78) instead of purchasing the $79 Diamond level.
Should You Invest In Cannabis Stocks?
During the American Cannabis Summit, the team at the NICI claimed to reveal the “three hottest cannabis trends” for this year that have potential gains of up to 1,000% – trends that you’ll want to jump on “before federal legalization.”
But those are some bold claims, some of which clearly based on the assumption that cannabis will become federally legalized here in the United States.
But is there any validity in those claims? How are the current pot stocks fairing? Should you really invest your money in these types of stocks?
As a full disclaimer, the people putting on this Cannabis Summit are far more experienced and knowledgeable than I am both in stocks and anything relating to cannabis. Their insights are definitely worth listening to at the very least if you’re considering investing in pot stocks.
But the trends in cannabis stocks have been, well, abysmal. Overall, 2019 was a really bad year for these types of stocks. And while many were expecting them to rise back up, that hasn’t exactly been the case thus far in 2020.
Let’s take a look at one company, Hexo Corp. The company’s stock plummeted 70% in 2019, and has continued to fall so far in the not-so-new year.
So why are these stocks falling?
Well, when you do a quick google search, you’ll get a wide array of speculative answers. But there were two that I found in most articles that make a lot of sense.
One is that, in the U.S. and Canada, there’s still a black market that new, “legal” companies are trying to contend with.
This is especially true in the U.S. in states like California, where legal marijuana is taxed very heavily.
But what’s probably a bigger factor is what one article called “distrust” in the industry overall. And I think that distrust is firmly rooted in the confusion surrounding the legality of cannabis – especially in the United States.
In fact, the NICI touched on it when promoting the 2020 Cannabis Summit by saying that there’s trends you want to jump on before cannabis is federally legal. They’re saying that because cannabis is illegal at the federal level in the United States.
The issue that poses is that federal law trumps state law. So even though there’s states that have “legalized” it, federal law enforcement is still allowed to shut down even state-legal pot businesses.
And while this wasn’t as big of a concern under the Obama administration, who had lax views on marijuana and even instituted non-interference policies, all that changed when the Trump administration took office in 2016.
And while experts like those at the NICI are looking forward to the federal legalization of cannabis in the United States (which was a focus in the 2020 Summit), the truth is that law reforms like that could be far in the future.
Especially since 2020 is election year for the U.S. and the Trump administration could be voted to stay in office for another 4 years, thus delaying the presumed federal legalization of pot and thus the gains they’re expecting investors to make once it becomes fully legal.
So whether or not you decide to invest in pot stocks is a completely personal choice. Just remember that, like with any other type of stock, there’s a lot of risk involved, so be sure to do your research before putting any money on the line.
Summing It Up
Cannabis stocks are the “next big thing” in the investment world, and in truth there is the potential to make a lot of money with them – just like with any stock.
If you are considering investing in them, then you should definitely do your research and take advice and insights from the experts.
That being said, the American Cannabis Summit does offer a lot of valuable information in this area, and the team at the NICI has a lot of combined experience under their belt and could probably offer you good advice.
It’s worth listening to at the very least, if you had the money. And if you don’t want to spend that much right now, you could always check out the NICI’s free daily newsletter and go from there.
Stocks are volatile, and the political climate (which pot stocks are currently reliant on to some degree) is always changing. So just recognize the risks involved and don’t expect to become a multimillionaire overnight.