Publisher's Note: Mr. James Dines is a legend with a reputation for being ahead of the curve in major investment trends, being called "The Original Gold Bug," "The Original Internet Bug," and most recently, "The Original Pot Bug."
Today, we bring you his insight in an excerpt of The Dines Letter discussing his investment strategy and outlook for the rapidly expanding pot sector. It's a "must read."
To your wealth,
Nick HodgePublisher, Outsider Club
It is the customary fate of new truths, to begin as heresies, and to end as superstitions.
-Thomas H Huxley
Short-term traders seek small, quick gains, while long-term investors patiently hold for larger long-term gains. We, however, prefer a third, more flexible option: getting in very early to brand-new bull markets for huge intermediate gains.
TDL (The Dines Letter) has been fortunate enough to have very early discovered many new bull markets, starting with "The Original Gold Bug," to the current "The Original Pot Bug."
There are pot stocks to be discovered in this sense. Our first step is to identify a large field of cannabis opportunities in which to invest. Not since we became "The Original Gold Bug," or later "The Original Internet Bug" in 1994, have we been as stupefied by the enormity of growth we perceive ahead for cannabis.
Why? Pot's acceptance was rising relentlessly, such that its usage was unstoppable - plus it was non-addictive, and thus could solve the addictive opioid epidemic. We predict that pot sales will exceed tobacco, liquor, and beer combined - and relatively soon, believe the unbelievable or not. While others shunned marijuana stocks, we fearlessly pondered in which to invest.
Cannabis' newly-studied components could also provide new medicines by pharma companies that unlock products from both marijuana and hemp! "The Coming Hemp Boom" is already in sight. Many marijuana companies are already into it. Hemp, lacking psychoactive properties and useful in a multitude of ways, had been unfairly ostracized due to guilt-by-association. TDLrs who are farmers are hereby alerted to this new crop, and thus able to drink the cleanest water upstream from The Herd.
We have never recommended the use of pot, which is beyond our jurisdiction. The truth is, au fond, we are just simple reporters sharing our vision that pot usage will inevitably soar worldwide no matter what we did or said, and hoping to lead you to high profits over the Intermediate term. The walls against pot are crumbling - prosecutors across America are de-prioritizing, or avoiding altogether, marijuana possession cases and are focusing instead on murder cases and other serious crimes. Also, marijuana-related criminal records of non-violent offenders are being expunged in cities such as Baltimore, Chicago, Philadelphia, and New York. The released victims even fairly deserve an apology.
As challenging as it is to select winners in the cannabis arena, please keep in mind that the "Sell" signal is always entirely yours. Either try to pick the top, or sell small percentages all the way up, avoiding the Low State of Greed and leaving something for the next buyer. You have to put in some work to identify your ideal "Sell"; TDL subscribers can start by reading the How to Use The Dines Letter booklet included in your Introductory Kit. Also our key books: Mass Psychology, Goldbug! (unabridged), and Secrets of High States.
There's a time to buy, and a time to harvest, some pot stocks are not widely mentioned in the financial press yet, so Mass Psychology's "secret desire of all gamblers to lose" has not yet signaled its final top.
Which cannabis stocks to buy? Being first is like buying as many hotels in the best locations as soon as possible in the children's game Monopoly. Second is never first, and you can quote us on that also.
Weak-kneed, overpaid executives at Coca-Cola and Pepsi will overcome their timidity, sooner or later, seeking to acquire cannabis companies rather than building them from scratch. Beverage companies' acquisitions will be followed by a thundering herd of liquor, cosmetic, and "wellness" groups (a word you'll hear more about soon), all seeking pot and hemp companies as well. The bidding for these companies will be historic - perhaps hysterical - funded by acquiring corporations with easily-printed stock certificates. When selecting recommendations for TDL, we've specifically kept in mind which ones might be soonest to be acquired. Not even considering the eventual, desperate purchasing by short-sellers.
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Mass Psychology is crucial in our work, and see how quickly it has changed regarding pot. Four months ago, it was illegal to possess pot in Canada, but now, the Canadians' hysterical demand for the new ticker tape symbol "POT" had to be solved by a lottery! After winning it, the tiny Vancouver-based cannabis company, whose former ticker was "YOLO," jumped 65% on the first trading day, February 1, 2019. Everybody wants to get in on the act!
Finally, tardy managers of large hedge and mutual funds will be buying, but in an unfamiliar field they'll just buy smattering amounts of as many different pot companies about which they are generally aware, diluting pure focus. (As noted, second is never first.)
James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of five highly regarded books, including "Goldbug!," in addition to his popular newsletter, The Dines Letter, and videotaped educational series. Dines' highly successful investment strategies have been praised by Barron's, Financial Times, Forbes, Moneyline, and The New York Times, among others.