YSO4: LEGAL MARIJUANA

Marijuana Legal in Canada—Will Others Follow Suit?

Recreational use became legal in Canada in 2018. (Medicinal use has been legal in Canada since 2001.) Other western countries could follow suit. After all, legalising cannabis means it can be taxed—a key reason alcohol prohibition was lifted in the US in 1933. Already, it is legal for medicinal use in 33 US states and for recreational use in 10 states and Washington DC. (Up from 29 and eight states respectively a year ago.)

Here’s how our first YFSOL Special Marijuana Opportunity has performed:

Legal marijuana is on a high. Apologies for the pun.

There is increasing interest among governments to legalise cannabis for medical and private uses. Legal marijuana companies are benefiting massively. So are investors.

If you had invested $10,000 when we launched our first legal marijuana investment, you’d have turned that into $15,800.

Significant growth forecast

Legal cannabis sales are set to quadruple from around US $7.4billion in 2017 to US $29.2 Billion by 2022 in North America alone, according to a study by investment data house Arcview Market Research, reported in this insightful infographic by VisualCapitalist.com: The Consumer Potential of Retail Cannabis. (CLICK THE LINK.)

Legal Marijuana: the Risks

Let’s look at the other side. While the signs are promising and past returns have been excellent, the future of legal marijuana is hard to predict.

The main thing to be aware of is that marijuana is a commodity. That means as demand grows, more people may farm it. Growth in supply growth may outstrip growth in demand. It will be interesting to see how cannabis producers and manufacturers of products that use cannabis distinguish themselves and their products.

The big prize is the US market. There is huge potential growth here. Further legalisation may happen or the US might roll back its current legalisation of cannabis for medicinal and recreational uses.

Will other countries follow Canada’s example? Again, we don’t know. But the potential for growth is substantial. Apart from Canada, only Uruguay has completely legalised cannabis.

Please also note that while the returns so far have been fantastic, past performance is no indicator of future results.

Our take: we think there are substantial returns to be made. We believe we are at the beginning of marijuana’s mainstream appeal, but the risks are commensurate with the potential for high returns.

NOTE: similar to our position on wine (alcohol), Yachting Financial Solutions holds a neutral position towards the consumption of marijuana. We see that as a matter of individual preference, judgment and choice. We are merely highlighting its investment potential.

YSO4: Marijuana in a nutshell

We’ve identified three marijuana funds for this YFSOL Special Opportunity: two with a solid track record and a newcomer with exciting potential.

The minimum investment is US $10,000 for existing Polaris clients and US $25,000 for new ones. There is no upper limit.

To participate, you will need to set up a YFSOL Polaris account if you don’t already have one. Don’t worry. It’s simple and you only need to do it once. We’ll help you.

Details

Structure:
You will be investing equally in three funds through YFSOL’s Polaris platform:

  1. 1/3 in Horizons Marijuana Life Sciences Index ETF (Canada)
  2. 1/3 in Purpose Marijuana Opportunities Fund (Canada)
  3. 1/3 in ETFMG Alternative Harvest ETF (USA)

Valuations:
Valuations are completely transparent and are done daily by the exchanges where the funds are traded. You can check prices at any time.


Redemptions:
At will. You hold the investment directly through our Polaris platform.


Base Currency:
US Dollars.


Minimum Investment:
US $10,000 for existing Polaris clients; US $25,000 for new Polaris investors.

Your Next Step

If investing in legal marijuana excites you, get in touch with Clive or Teresa today. They’ll guide you through the process.

Get in touch today.