People were running. The heavy beat of panicked feet played a steady rhythm outside my door.
Curious, I cracked it ajar. And I immediately noticed a number of empty dorm rooms down the hallway with doors wide open.
My floor mates hadn’t even bothered closing them as they flocked toward the stairs.
Without thinking, I joined them. I didn’t know why people were running, but when others look scared, you don’t wait for what’s scaring them to come over and introduce itself.
Good thing I didn’t wait. It turned out there was a fire on the floor thanks to an electric space heater, and the nearest smoke detectors weren’t working. (I think some students had hung hats over them.)
Luckily, everyone made it out fine, and the fire didn’t spread much before getting doused.
But the event stuck with me through the years. It reminded me of something we don’t like to hear … that sometimes, it’s just smart to follow the crowd.
And I can’t help thinking about that concept today as I consider the recent rally in the medical marijuana industry.
See, the next wave of the cannabis cycle just arrived in the form of a $3.8 billion investment by giant booze maker Constellation Brands.
You’ve likely heard of some of its products: Svedka vodka, Robert Mondavi wine and Corona beer.
This week, the company upped its stake in the world’s largest publicly traded marijuana company, Canopy Growth Corp. (NYSE: CGC). It agreed to buy 104.6 million shares at C$48.60 (US$37.05) per share — a 51% premium to the stock price.
And that’s when the crowd started paying attention…
After all, this is big news. The deal gives Constellation 38% ownership of Canopy Growth, meaning the mainstream booze company has a clear opinion of where the marijuana industry is headed.
So it’s no surprise that Wall Street got a little excited. When the deal was announced, Canopy’s stock soared 30% on Wednesday alone.
In fact, this was such a massive announcement, it pulled up the entire industry.
The ETFMG Alternative Harvest ETF (NYSE: MJ) — a fund focused on marijuana stocks — climbed 8.19% the same day. Aurora Cannabis Inc. (OTC: ACBFF) popped 22%. Cronos Group Inc. (Nasdaq: CRON) jumped 14.5%. Kush Bottles Inc. (OTC: KSHB) rose 10%.
This list goes on.
Clearly, Constellation’s move resonated, and the reason is simple: It means big institutions are starting to turn to this new market.
And that’s a giant, flashing, neon-green sign that the pot industry is ready to go mainstream…
Follow the Smart Money Into Pot Before It’s Too Late
So, if you’re not already parking a portion of your portfolio in this space, I ask you this: What are you waiting for?
This industry is on the verge of a 4,067% boom — and excitement about it has been mounting for a while. Now that strong institutional money is flowing in, it’s the ideal moment to get in.
I urge you to open up your door and follow the stampeding crowd before it’s too late.
If you don’t know how to start, don’t worry. The best way to get your foot in the door is to follow an expert in the field, such as natural resource investor Matt Badiali. He has his readers in this market, and they’ve already started profiting nicely from these types of pops.
In fact, here’s what one of his readers said this week:
Jerod B. writes: I watched your podcast last week and took a leap of faith. I made significant stock purchases in ___ and ___. After watching ___ trend down, I was second-guessing my decision. But after reading your email today and checking my Fidelity accounts, I am a HAPPY man. I’m glad I didn’t get gun-shy and pull out of my positions.
I work in the medical field and know that national medical marijuana legalization is right around the corner.
Catch you next week.
Regards,
Jessica Cohn-Kleinberg
Managing Editor, Banyan Hill Publishing