Unlike Reddit short-sellers, we can see this massive profit opportunity coming – and it will make you even richer…
There is a new force to reckon with in the markets.
It goes by the name of r/WallStreetBets – and they have a plan to beat Wall Street at its own game.
This band of Reddit revengers made themselves known last month by targeting a few heavily shorted stocks, and their collective actions sparked a buying frenzy that sent more than a few struggling stocks to the moon.
One of those targets was the video game retailer GameStop (GME).
With an outdated business model that has suffered declining revenue for five straight years, I’m not at all surprised that short-sellers had their sights set on this beleaguered company.
Once this Reddit crew got to work buying the stock, GameStop’s share price shot unmercifully higher, taking the stock from around $13 per share to a high of $483.
Given the pain their relentless buying inflicted on hedge funds and the brokers that fund their bets, you could say their plan worked.
Unfortunately, trying to cash in on an emerging phenomenon once it’s out in the open makes for a fool’s errand. No one saw r/WallStreetBets coming, and that’s why what they did worked so well.
Wall Street certainly sees them now – and predicting how the r/WallStreetBets spectacle will unfold is anyone’s guess.
More Pain Than Gain
Indeed, the r/WallStreetBets phenomenon caught the investment world by surprise.
The gains their actions made possible by squeezing the living daylights out of short sellers were massive. And the prospect of more to come has sent many investors scrambling to figure out how to get in on the action.
But catching a cat that’s already out of the bag entails massive risk. You’re more likely to get scratched than profit.
You see, the r/WallStreetBets short squeeze worked so well because it’s a “Black Swan Event.”
Nassim Nicholas Taleb, a successful trader-turned-writer and philosopher of risk, gave the term new life back in 2007 with his book The Black Swan: The Impact of the Highly Improbable.
Black Swan comes from philosophy. It refers to the highly improbable. Any occurrence that rightfully earns the “Black Swan” label is not merely unlikely – it must be deemed impossible by most. That, or it wasn’t anticipated at all. And the impact of a Black Swan is significant.
For example, COVID-19 caught everyone by surprise. The likelihood of experiencing one in any single year is low. But a global pandemic emerging at some point is totally predictable. So, you can’t call COVID-19 a Black Swan.
On the other hand, the r/WallStreetBets gang caught many hedge funds, brokers, and regulators entirely on their back foot. Their actions exposed vulnerabilities in the deepest reaches of financial market plumbing and drove Robinhood to seek a billion-dollar bailout.
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But the scrutiny on r/WallStreetBets is now intense. The game they play isn’t complicated. And the fleeting 3,615% gains that GME owners enjoyed is nearly impossible for everyday investors to capitalize on – and even harder to repeat predictably.
Besides, no one has deep enough pockets to play “Wall Street” vigilante forever, much less the stomach.
And with the U.S. Securities and Exchange Commission (SEC) now on the hunt for collusive “pump-and-dump” behavior among the r/wallstreetbets crowd, the downside risk to following along just got even more unfathomable.
But why waste time and resources hunting for Black Swans when I can point you to a White Swan with the upside potential to hand you gains of 20X, 30X, 50X your money – or more?
Especially considering it takes nothing more than owning the top names in cannabis.
The Cannabis White Swan
Whereas a Black Swan is unexpected, a White Swan is entirely predictable.
And when it comes to the cannabis market, there’s a lot that we can confidently predict.
We know legal cannabis sales in the United States will increase at least 40% to 50% each year for the next several years – far outstripping the growth possible in any other industry.
We know federal legalization is inevitable and will accelerate that growth even more.
We know that the top 20% of U.S. cannabis operators will capture 80% of the market and propel their growth at double the cannabis industry’s rate.
And we know that once those top names list on the New York Stock Exchange (NYSE) and Nasdaq, the rush to own the highest growth industry on the planet will send cannabis stock valuations through the roof – making the gains you manage to milk from squeezing short-sellers look like chump change.
Among those top cannabis companies, you’ll find Jushi Holdings Inc. (OTC: JUSHF). In a couple of years, its share of the pie could make Jushi 50X more valuable than it is today.
And the gains possible along the way will be gains you can capture. Not some short-lived run that could just as quickly turn into a loss by the time you act.
Now, predictable does not mean profitless. It just means expected. And we can expect the cannabis industry to develop incredibly quickly as it moves from a startup sector to a fully mature industry.
The only thing holding the door to this incredible opportunity open is that the Big Money crowd is still mostly shut out.
The federal government hasn’t legalized cannabis yet.
And that keeps top U.S. operators from being able to access the massive liquidity that listing on the NYSE and Nasdaq provides.
But that’s coming sooner than most people expect.
Unlike the r/WallStreetBets event, we can see this massive profit opportunity coming.
And I’ve identified over ten stocks that, just like Jushi, have an excellent shot at reaching the top of the cannabis summit.
To find out which companies will make the most of the Cannabis White Swan, you’re free to join NICI Membership today.
Executive Director, National Institute for Cannabis Investors
February 17 2021