With full legalization, this state is going to become the “Marijuana Mecca” of the Midwest…

It’s no secret that stocks aren’t performing well, and I know times like these make it difficult to be a tough and patient trader.

However, as you have seen, things are unfolding in the cannabis market exactly as they are supposed to. If you can handle the storm now, you’re going to set yourself up very nicely for long-term gains. At the beginning of 2019, I told you it was the “Year of CBD.” Now Walgreens, CVS, and Rite Aid are racing to fill their shelves with as many CBD products as possible.

We’re also seeing the normalization of cannabis, with even Martha Stewart jumping into the pet CBD market.

Heck, even former Speaker of the House John Boehner, who was originally an opponent of cannabis legalization, has gone all in.

And now, another domino has fallen into place with yet another state legalizing recreational marijuana use.

More legalization is good news for the overall cannabis market, but it’s even better for some of the stocks in your model portfolio…

Welcome to the “Marijuana Mecca” of the Midwest

It happened quickly, but Illinois lawmakers approved the legalization of recreational marijuana last Friday.

It was the first instance where a legislature approved commercial sales. Those who are 21 or older may possess up to 30 grams, and adult visitors to the state may possess up to 15 grams. The state is also rolling out a unique tax structure.

I’ve talked about how the right structures can get a legal market started on the right path. On Friday, look out for a report where I talk about one such market.

If taxes are too high, we could end up with another California on our hands.

Cannabis Tax Structure

In Illinois, sales will be taxed at 10% for THC levels at or less than 35%. Cannabis-infused products will taxed at 20%, and 25% for THC concentrations of more than 35%. Municipalities can add special taxes up to 3%, and counties can add up to 3.75% in unincorporated areas.

Now, I believe taxes should be between 10% to 16%. Anything else, like how California rolled things out, can cause trouble.

This could be the one tool standing between you and your success as a cannabis investor. To find out more, click here.

If prices are too high, cannabis enthusiasts just turn to the black market. I’m still thinking about supertaxes on high-THC cannabis.

But I don’t want be too hard on Illinois just starting out, because the important thing is they are moving forward with legalization.

It’s going to become what I’m calling the “Marijuana Mecca” of the Midwest. I know Michigan has legalized recreational marijuana, but with Illinois, you get Chicago. The winters are rough, but it’s a great sports town, and the Windy City actually set a new tourism record for itself in 2018 with 58 million visitors.

And as I mentioned earlier, this is going to benefit the companies in our model portfolios, especially one member of The Cannabis IPO Insider I recommended back in December 2018. Some have already experienced 100% gains, and with this move, more should be on the way.

It’s already a leader in the medical-use state program in Illinois, which puts it in a great position to lead the entire market when recreational sales begin rolling out. That’s significant, as current medical dispensaries will be the only legal sellers of recreational cannabis from January 1 through the middle of 2020.

Again, I know the market has been difficult to stomach lately, but hang in there.

Everyone will eventually realize these stocks shouldn’t be taking a nose dive.


Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. Our experts predict the CBD market alone could grow more than 15 times faster than the cannabis industry as a whole in the coming year. Investors who position themselves for success now could make an absolute killing off these two CBD companies. To find out more information, just click here.


Comments

9 responses to “Welcome Illinois to the Legalized Recreational Club”

  1. Illinois like Californian Lawmakers never saw a tax they didn’t like. Lawmakers never learn because it is an opportunity to create a bigger bureaucracy. New regulators ,inspectors, enforcement, fees, penalties, etc..

  2. Hey Greg how are you? Thank you for the information. I was already aware of this thru my other sources. One thing for sure, two things for certain. We live in a capitalistic country and if there is an opportunity to make some money. This country will cease the moment, now why it is taking so long for our government to get out of the way I truly don’t know. What I do know and agree with you Greg this industry is not nosediving so why are our stocks prices dropping like a bad habit is baffling??? I have my opinion as to why this is happening but I will refrain from sharing it because I am not the expert. I will tell you this I am following every recommendation you have issued to this point. I doubled down on some of my position during this turbulent times as much as I can. It is hard doing that because it goes against everything I believe in. But in this case I don’t feel as though I am throwing good money behind bad!!! I know this industry is good and I am counting on you to help me prove it by making me a great cannabis investor!!!! I thank God for you every day Greg. I hope you had a great day and much success to all of us in the future!!!

  3. Lloyd hit it right on. If the tax system in these states worked, they wouldn’t be basically bankrupt.

  4. But with Michigan, you get Detroit. Well, scratch that. Maybe that’s not such a great selling point after all.

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