Financial Freedom 101

Marijuana stocks are very popular right now. With the recent blue wave in the U.S., the cannabis industry should grow within the next four years. That’s understandable considering the growing number of countries and states that have legalized Marijuana in some form. Some Cannabis CEOS predict the industry to be worth up to $150 billion within the next 10 to 15 years. Instead of betting on one company, I suggest you pick an ETF to bet on multiple companies, not just one.

The Biden administration has publicly stated that it plans to decriminalize Marijuana, which would be HUGE for U.S. Marijuana stocks, and I think that’s why $MSOS is the perfect investment in the cannabis industry, bet on ALL US Cannabis stocks, not just one.

Cannabis- 2020’s

“History Doesn’t Repeat Itself, but It Often Rhymes.”

– Mark Twain.

• Cannabis today may be comparable to alcohol in the 1930s.
• A majority of Americans support legalizing cannabis. However, it remains predominantly illegal.
• A global pandemic shuts down the world, and the U.S. struggles with record unemployment, reduced revenue, and economic difficulties.
• MSOS holds primarily U.S.-focused cannabis stocks, which differentiates itself from the other cannabis ETFs such as M.J. and YOLO.
• Investors looking for an efficient way to gain exposure to the burgeoning U.S. cannabis sector should consider MSOS.

Potential Benefits

• Added tax revenue
• A new source of jobs/income
• Medical research opportunities
• Less demand for black market Cannabis
• Reduction in opioid addiction

U.S. 2021 Legalization map

Source: Disa

Growth

According to MBIZ Daily, the cannabis market is estimated to reach $20-25 billion, with organic growth in both existing markets and new markets. On November 5 states had cannabis on their ballots for legalization, and all five votes were passed; this is HUGE the industry is only going to get bigger.

Illinois began recreational sales on January 1, 2020, and monthly sales have doubled during 2020 due to strong demand and initial undersupplied market. Several states are expected to begin recreational sales in 2021, such as New Jersey and Arizona, which will provide significant tailwinds for multi-state operators (“MSOs”) with exposure to these markets.

$MSOS- AdvisorShares Pure U.S. Cannabis ETF

The U.S. represents the largest market globally, which represents untapped growth for potential cannabis investment and legalization. $MSOS is the first and only actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators. As one of the two major cannabis markets globally, the U.S. market has come a long way since Canada became the first developed country to legalize cannabis in October 2018 entirely. While the needs are still federally illegal 2021, could be the year for mass legalization, which would cause significant growth for the stocks and industry.

This is an excellent emerging growth opportunity investment, especially if you are a young investor; this could be a great long term opportunity, just like investing in alcohol and tobacco in the early 1900s. Cannabis securities span multiple industries, including agriculture, biotechnology, pharmaceutical, real estate, retail, finance, and other medical applications. The portfolio manager believes that an evolving landscape of select, cannabis-related companies may provide upside potential that may lead to attractive growth opportunities, including the potential for merger and acquisition activity as the market matures and evolves.

$MSOS Holdings

AdvisorShares Pure Cannabis ETF is comprised of a mix of mutual funds, swaps, and related derivative securities – as opposed to simplistic picks on underlying securities. One genuine risk for investment in this fund is the exposure to mid and small-cap equities. It also holds a mix of equity and, in some instances, fixed income products, introducing counterparty risk into the product. Its prominent single-security underlying equity positions include Curaleaf Holdings Inc. (CURA) (OTCPK:CURLF), Green Thumb Industries (OTCQX:GTBIF), and Cresco Labs Inc. (OTCQX:CRLBF). This fund makes more concentrated use of mutual funds and derivatives than more substantively picking individual underlying stocks.

AdvisorShares Pure U.S. Cannabis ETF holdings are heavily invested in MSOs, which focus meaningfully on multi-site operators, gradually becoming a growing trend in a sector in full evolution. Multi-site operators present advantages in a complex, changing regulatory environment; importantly, it also has holdings in other cannabis-related industries such as a cannabis REITs and several pick-and-shovel plays. Given the broad economic implication of cannabis legalization, we expect multiple sectors to benefit, including MSOs and adjacent industries represented by MSOS.

AdvisorShares Pure U.S. Cannabis ETF is the new-kid-on-the-block of a growing cannabis industry characterized by regulatory overhaul, changes in consumer attitudes, hyper-growth, ultra-leverage, and increasing product commoditization. The sector, since the start – has gone through a boom cycle in 2018, followed by a bust cycle, and is now garnering renewed investor interest under the Biden government.

$MSOS is an opportunity to gain long risk exposure to the flourishing cannabis industry. With a changing regulatory backdrop, with a government focused on liberalizing the marijuana industry and increasing investor/fund interest, it provides the perfect platform to build long-term capital gains. The most significant risk I see in this industry is these companies’ overall financial growth; they are growing rapidly, but how long until they are profitable? The sector is proliferating, and $MSOS could be an excellent long term investment to hold onto just like alcohol and tobacco when added to the market.