Our latest recommendation happens to be the only pure-play fund in the cannabis/marijuana space, and it’s the ETFMG Alternative Harvest ETF (MJ), notes Jim Woods, ETF expert and editor of Intelligence Report.
This ETF has been on fire in 2019, as the smart money has embraced the burgeoning pot stock sector to the tune of nearly 48% year to date, and it’s done so for a number of very good reasons.
More from Jim Woods: Twilio: A Fast Money Stalwart
Canada’s recent move to legalize recreational marijuana use gave Canadian pot stocks a legitimate boost (which is where most such companies are domiciled).
There’s also been a move by tobacco and beverage companies to get in on the cannabis craze, including high-profile moves by Constellation Brands Inc. (STZ) and Anheuser-Busch InBev (BUD) to get into the cannabis market by making investments in pot growers Canopy Growth Corp. (CGC) and Tilray Inc. (TLRY), respectively.
Even branding icon Martha Stewart is getting into pot stocks, as she recently partnered with CGC to help the company develop and market cannabidiol (CBD) products for people and animals as part of her overarching wellness initiatives.
CBD is the non-psychoactive portion of the cannabis plant that doesn’t get you “high†but that does have proven medicinal benefits for all sorts of ailments.
I recently traveled to Medellin, Colombia, to visit to the production headquarters of medical cannabis producer PharmaCielo, Ltd. (Toronto: PCLO). The group of investors I was with included my former Congressman, the always-fascinating Rep. Dana Rohrabacher.
See also: ET: An MLP to Phone Home About
Here we were given an exclusive tour of the PharmaCielo plantation and laboratories. The trip was extremely educational, as I learned a lot about the production, cultivation and extraction methods used in the farming process.
I also learned about the medical applications of CBD, which include reducing systemic inflammation, pain relief, reduction of anxiety and depression, the alleviation of cancer-related symptoms, enhanced neurological health and increased cardiac-related health including the ability to lower blood pressure.
From an investment perspective, I learned that the market for medical CBD is projected to be enormous over the next several years. And according to a recent report from Wall Street firm Jeffries, its surprise upside target for the industry is upwards of $130 billion globally by 2029.
The bottom line here is that evolving social norms, increasing government approvals in the United States and around the globe and the increasing acceptance by the medical community regarding CBD products have made the cannabis-marijuana sector a real investment opportunity, and one that we need to jump on now. I recommend adding the ETFMG Alternative Harvest ETF to your holdings.
More From MoneyShow.com: