YSO1: LEGAL MARIJUANA
More countries and US states are legalising medicinal use of marijuana. There is also a softening towards recreational use. For instance, within the past week, the Canadian Senate gave the nod for legislation legalising recreational use nationwide.
We could be on the cusp of a big break out for legal marijuana.
Unsurprisingly, funds that let you invest in a basket of legal marijuana companies have been attracting attention. They’ve been doing well.
The Alternative Harvest ETF has returned 25% since its launch in 2015. In other words, a US $10,000 investment would have grown to US $12,500. A strong return over the period.
The Horizons Life Sciences Index has done even better. It has returned 137% since inception, turning a US $10,000 into US $23,700 in just over a year.
Benefits of Investing in Legal Marijuana
Marijunana is gaining acceptance
Marijuana has been legalised for medical use in 29 US states and recreational use in eight and Washington DC. Canada is in the process of legalising recreational use of marijuana nationwide. Analysts predict that other advanced economies will be watching with interest to see what happens in Canada, with an eye to following suit. Why? Tax revenue.
Significant growth forecast
Legal cannabis sales are set to quadruple from around US $6.5billion in 2016 to US $24.5billion by 2021 in North America alone, according to a study by investment data house Arcview Market Research.
And only days ago, the Canadian senate passed legislation to start the process of legalising marijuana for recreational use nationwide, possibly by the end of the summer. That should boost the predicted North American market growth even more.
Legal Marijuana: the Risks
While the signs are promising, the future of legal marijuana is hard to predict.
The US might roll back its legalisation of marijuana for medicinal and recreational uses. However, US Attorney General Jeff Sessions indicated only a few days ago that he is concentrating on cracking down on more destructive substances—leaving current rules for legalised marijuana in place rather than attempting to row them back.
Marijuana is a commodity. That means as demand grows, more people may farm it. Supply growth may outstrip growth in demand.
Our take: we think there are some excellent returns to be made, but the risks are commensurate with that.
YSO1: Legal 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.
You will be investing equally in three funds through YFSOL’s Polaris platform:
- 1/3 in Horizons Marijuana Life Sciences Index ETF (Canada)
- 1/3 in Redwood Marijuana Opportunities Fund (Canada), the new boy on the block
- 1/3 in ETFMG Alternative Harvest ETF (USA)
Valuations are completely transparent and are done daily by the exchanges where the funds are traded. You can check prices at any time.
At will. You hold the investment directly through our Polaris platform.
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.