Marijuana stocks have taken a beating.
But let me reassure you: This is temporary. When the panic settles, pot stocks will rebound.
I still believe pot stocks are one of the best investments for 2020.
A key reason: The growing cannabis industry is disrupting adult beverages — creating a new vice economy.
It’s already happening.
The Canadian beer market suffered its biggest decline in years in 2019.
Watch out, Budweiser! You could be next.
Keep reading and watch my IanCast today to see which pot stock is ready to double this year … and the best strategy to capitalize on cannabis before it’s legalized in all 50 states.
Without demand, there’s no reason for a business to exist.
This is not a problem for pot stocks.
The largest pot company in the world shot up 20% in one day … for the fourth time in recent months.
Buyers are flooding in. This is a great sign for supply and demand — which is why it’s something we focus on at Bold Profits. Demand is a crucial part of our GoingUpness system.
We check the value of a business and make sure the stock is scarce enough to bid the price up. This is what leads to the BIG gains.
And I’ve found an incredible pot stock that you can buy today. I think a 100% gain for this pot play is conservative.
We’re also going to tell you how this strategy applies to Tesla and bitcoin in America 2.0.
Watch it all here:
The Cannabis Market Continues to Grow
Canopy Growth: A lot is going right for Canopy Growth, the leaders in the current cannabis market.
Canopy reported earnings this morning and the stock is up 20%.
Gross revenue up 20%, change versus Q3 2019 up 39%, free cash flow up 41%. This is the fourth time Canopy has gone up 20% in a single day in the last three months.
What does that mean? It means that investors trust Canopy.
It’s one of the biggest marijuana companies in the world right now based on the company’s value. It’s definitely a leader and definitely showing signs of optimism for the pot market in general.
Aurora Cannabis: It’s been a tough year. Aurora Cannabis stock didn’t move much, but the company’s earnings report was less than thrilling.
Aurora’s full focus has been on growth at whatever no matter the cost.
The company’s aggressive expansion saw them buying up smaller companies and expanding all over the world.
But that’s the problem.
The market does not like when companies try to restructure their business.
Now they are realizing they need to slow down a little bit. However, Aurora Cannabis is on the right path, paying off a lot of debt and cutting costs.
That’s why there wasn’t a mass sell off when they announced their earnings report.
The selling, we think, is dried up and it looks like more and more buyers are coming in.
Cannabis Market: Aurora continues to find investors, in spite of the doom and gloom MarketWatch and Yahoo! Finance spout about cannabis stocks.
They are trying to persuade people cannabis companies are all going to go to zero.
However, we’ve actually seen that people have been willing to fund these companies even though demand is supposedly “drying up,” there’s “no business” and all this junk that’s being put out there.
Aurora has a few hundred million in funding and after a few stock sales. They find investors — that’s the point.
When the media seems to have a super negative outlook, there are still people out there giving cannabis companies hundreds of millions of dollars.
That’s not just Aurora, that’s a lot of companies that you think would be struggling because of their stock price.
There’s so much demand out there because it’s such a new industry and it’s growing fast.
And demand for marijuana will not slow for the next 50 years.
Which is why pot companies are approved for loans often. Even the banks understand how much potential there is in the cannabis sector.
We are incredibly bullish about this sector. ETFMG Alternative Harvest ETF (NYSE: MJ), we predict will shoot up 100% this year.
Electric Growth For Tesla
Tesla Inc. (Nasdaq: TSLA) has had a Rocky Balboa style comeback.
A year-and-a-half ago, the nay-sayers were out in full force, saying what they always say about Tesla: “It’s about to go out of business,” “It’s going bankrupt,” “Cut the rating,” all this junk.
Yesterday, Tesla raised $2 billion in a snap. Tesla stock started down yesterday and ended up more than $800 a share.
They opened their big gigafactory in China and they are already delivering cars over there. It’s an amazing scenario for them.
We talk about the old world of stocks and the new world. There is also the old world of investors. They are marked by their attitude on Tesla which is largely negative and almost always mistaken.
These old world investors use the argument that Tesla doesn’t sell that many cars compared to GM or Ford.
They are missing the point.
Tesla is a battery and automation company. They are not a car company; they just use this technology in cars. They are a tech company.
Those technologies are about to reach a huge growth phase. Tesla shouldn’t be valued as a car company, but that’s what everyone is trying to do.
Comparing Apples to Apples and Oranges to Batteries
When Amazon began gaining traction, investors would compare the market capitalization of Amazon to Macy’s, which was the dominant retailer at the time.
It made no sense.
However, fast forward out 5, 10 or 15 years and it makes complete sense because of what Amazon could do.
The platform of online retailing has inherent advantages.
It has greater distribution capability. You can stock inventory of an unlimited number of goods. There were so many advantages that seemed fictitious at that point in time.
It’s much like comparing some new companies with a technology that no one has had to put a price on before with some primitive technology.
That’s basically what’s going on with Tesla.
When investors are saying “It’s worth more than Ford and GM combined and that’s ridiculous.”
No, Tesla and GM are completely different companies and can’t be compared like apples to apples.
Someone responded to our last IanCast: Tesla’s 1-Day Stock Pop Was Not a Fluke, where we said, “No horse-and-buggy company made it as a motor company.”
They wrote in and said Studebaker apparently did. We looked it up.
Studebaker was a company that made the buggies for horses, but no one can say they made it as a car company.
They actually struggled. That’s the point.
Focusing on past trends can cloud your vision of future investment opportunities.
The old businesses never commit enough to the new business model in order to effectively change.
We would say that no horse-and-buggy companies made it.
We’re going to go out on a limb and say that none of the internal-combustion-engine (ICE) makers are going to make it as electric vehicles and autonomous vehicles.
None of them are going to make it. History repeats itself.
The same situation is going to play itself out. Tesla is the first company that really had the guts to take that step and only manufacture electric cars.
Tesla is also the unquestionable leader in self-driving cars. Who else has that kind of technology in their cars?
Is Bitcoin On The Glass Escalator?
We may never see under $10,000 again on Bitcoin.
Before the Halving in 2016, bitcoin was just a few hundred dollars. Then it went up to $20,000 in 2017.
There’s no sign that demand for Bitcoin is decreasing.
Europe’s current turbulence is perfect for Bitcoin.
Brexit passed and now there’s talk about Italy, Spain, Greece and others wanting to leave the European Union, and manage their own country again and their own currency again.
In the past, this kind of turbulence would have drawn people into gold, but today it might draw people into Bitcoin.
There aren’t many currencies out there that are stable at all. The U.S. Dollar, the Euro, maybe the Australian and Canadian Dollars.
Most currencies go down over time and any additional fiat currencies are going to drive up demand for Bitcoin.
All That Glitter is… Digital
There’s only ever going to be 21 million Bitcoin.
Everyone knows that and everyone always will know that.
Some bitcoin may get lost, but that just drives up the value because it makes for more scarcity.
And scarcity is what drove up the price of gold. Gold had proven scarceability.
However, the global gold supply increases by something like 2-3% every year. 
Plus, gold doesn’t have the utility that Bitcoin has.
You don’t buy things with a piece of gold, but you can buy things with Bitcoin.
Even though that’s probably not going to be the biggest use case for Bitcoin, it still has way more utility and you can do a lot more with Bitcoin than a piece of gold.
Crypto is part of the fintech revolution, which is part of the Fourth Industrial Revolution.
Money is a critical element of the economy. You cannot have a new country made or a new revolution made without having new forms of money come as part of it.
Those of you who have been following the America 2.0 story know that we are calling for the old world to fade out.
Some will fade out slowly and some will fade out fast. The new world, driven by the Fourth Industrial Revolution, will remake our country.
Editor, Rebound Profit Trader
 Gold Supply
This post was originally written February 14, 2020 and updated on March 13, 2020.