Biden Just Legalized Pot?!

Dear Reader,

Joe Biden just did something unprecedented when it comes to weed.

Last Friday, right before the Christmas holiday, he announced he was pardoning anyone convicted of “simple possession and use of marijuana under federal and D.C. law.”

Talk about trying to buy some votes for the upcoming election…

The important part here, though, is that cannabis companies are heating up because of the move.

In fact, on October 4, I wrote to you that the time to buy weed was right then.

Did you take my advice?

Here’s what I wrote…

I usually don’t do this… But I’m going to make a bold prediction… The time to buy weed is right now. There are three reasons why… The Senate just passed the Secure and Fair Enforcement Regulation (SAFER) Banking Act… once the SAFER Act is signed into law, it’ll be a boon for all things marijuana… Essentially, this bill will open up more access to capital and credit, which should bring more money into an industry that operates on razor-thin margins… This brings me to the second reason to buy pot now… Its impending reclassification. Right now pot is scheduled as an illegal drug under the Controlled Substances Act even though 47 states have already legalized weed in some form, whether medical or recreational. Its Schedule I classification puts it in the same category as heroin, LSD, and ecstasy. Once the SAFER Act passes, reclassification is only a stone’s throw away. This will open the floodgates to institutional investors who’ve been sitting on the sidelines…

There’s support from the White House on this, too… When President Biden took office in January 2021, he made a lot of big promises. One of those promises, which can still be found on his campaign website, was to decriminalize cannabis use at the federal level…

He also said he wanted to reschedule the plant and expunge sentences for those convicted of federal possession of marijuana. And for the most part, he’s made headway on those promises, something cannabis advocates have cheered. A year ago this month, Biden announced a sweeping pardon for those with possession charges.

Finally, the third reason to buy weed now is that pot stocks are near all-time lows. After the Senate passed the SAFER Act last week, pot stocks sold off across the board. It’s a “sell on the news” scenario… Tilray (NASDAQ: TLRY), one of the biggest players in the space right now, is down nearly 18% year to date. Innovative Industrial Properties (NYSE: IIPR), the only marijuana real estate investment trust, is down 16% year to date. Canopy Growth Corp. (NASDAQ: CGC) is down a whopping 73%. And a prominent exchange-traded fund (ETF) that tracks the industry, the AdvisorShares Pure Cannabis ETF (NYSE: YOLO), is down 23% year to date. From a pure chart perspective, it looks like there’s blood in the streets. Now, there are macroeconomic factors bringing the entire market down as well.

But the contrarian in me says to buy now.

It hasn’t been as explosive as I would have thought…

But it’s moving in the right direction.

The important part is this… I wanted to point your attention to why I was able to home in on this industry. I didn’t know Biden was set to announce the new pardon, but the smart money did.

It’s because I know how to track what I call Wall Street’s “Super Traders.”

They’ve been buying up pot stocks all year.

Here’s how I explained it in early October…

We’re seeing a lot of money moving into the space. That includes what I call the super-traders of the world, including our very own lawmakers and company insiders like C-suite executives. Check this out… Doing a quick search on CapitolTrades — a site that tracks congressional stock buying — I found that House Democrat John Yarmuth bought$30,000 worth of Cronos, House Republican Brian Mast bought Tilray, and House Republican Chris Jacobs bought Innovative Industrial Properties…

Digging deeper, I found pot insiders buying their own companies. Village Farms International CEO Michael DeGiglio bought 10 million shares; the CFO, COO, and CEO of Corbus Pharmaceuticals all bought over 500,000 shares; Hydrofarm Holdings CEO and Chairman William Toler bought over 5 million shares; a director at Cronos bought millions of shares; and Innovative Industrial Properties Executive Chairman Alan Gold bought over 400,000 shares.

This looks like a clear sign that something big is coming… It seems unlikely that so much money is flowing into these companies without a catalyst on the horizon.

That catalyst could have very well been the knowledge of Biden’s most recent pardon.

Now, this isn’t to toot my own horn about knowing the future or anything like that.

It’s just to show you how effective following the smart money can be.

You get to know all the big trends ahead of time and stick it to the corrupt politicians and Wall Street fat cats who profit off their insider advantage.

If you want to join me as I use my sleuthing skills to sniff out where the smart money is headed next, sign up for a risk-free trial to my premium newsletter, Insider Stakeout.

The market’s headed for a bullish 2024, and I’m making sure my readers know about all the big moves before anyone else.

Grab your binoculars, a gas station coffee, some snacks, and get in the unmarked car.

It’s time to go on a stakeout.

Stay frosty,

Alexander Boulden
Editor, Wealth Daily

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After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.

Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.

Check out his editor’s page here.

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