The Green in Hemp

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Nasty headlines everywhere. Everyone has an opinion on the Fed’s latest moves. And the action in the markets is ugly.

Except if you happen to be invested in hemp.

You might recall that Profit Watch flagged the positive developments happening here on 11 December.

We brought to your attention the fact that Donald Trump would soon pass the 2018 Farm Bill into law.

That’s exactly what he did this week.

He even had a bit of fun with it.

Check this out from his Twitter feed:

Source: Twitter

And now the news gets even better.

The US Food and Drug Administration (FDA) is considering regulating products that contain cannabidiol (CBD) and other cannabis compounds in food and drink.

This opens up the massive US market even further to the relevant companies.

This is big…

Let’s go over the facts in case you’re new to the story.

Hemp is from the cannabis family but doesn’t contain the ingredient to get you high like marijuana.

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Despite this, a relic of yesteryear meant hemp was regulated under the Controlled Substances Act. Therefore, it was illegal at the federal level in America.

That’s despite the nutritional and health benefits that many people believe it brings and use it for.

The US Farm Bill changes all that. Hemp farmers will be no different to those who harvest corn or soybeans.

One of the points I’ve made around this previously was that this would allow firms like banks and insurance access to the industry.

They previously dare not get involved for fear of prosecution.

That’s likely to change.

But even bigger is the possibility that the FDA will permit marketing of the potential health benefits of CBD infused into food and drinks.

There’s another reason I’m bringing this up today.

It’s a perfect example that there are plenty of positives happening across the world…away from the bearish headlines.

There is always a profitable opportunity somewhere…

A stock moving counter to the market

The mainstream media will always pull your attention to the worst news.

Fine. But I like to make the most of any opportunity in the markets.

For example, in the special report I released yesterday, I mention a stock called Charlotte’s Web Holdings, Inc. [CNSX:CWEB].

It’s a major brand in the hemp space.

It was up over 9% in the session just gone in North America.

You see? There are always stocks moving counter to the market — the catalyst just has to be big enough.

Here’s another example of how you could be doing that right now: Crypto.

Bitcoin is rallying.

How long will it last? I have no idea. But there was a move to take advantage of.

Just because the general markets are having a tough time doesn’t mean we can’t turn this period into an opportunity.

US stocks took nasty drops in 2015 and 2016 too. The market recovered — and it will again. The only question is how long it takes.

Right now is a great time to be going over your best ideas.

In selloffs like this, babies go out with the bathwater.

You can pick up great prospects at a lower price…if you can hold for a reasonable length of time.

Just look at what’s happening away from the spotlight and focus on the next decade…

China: The dark horse for 2019

That’s what some major venture capitalists are doing right now.

The Wall Street Journal reports that India’s biggest food delivery start-up just raised a cool US$1 billion.

A similar South Korean business raised US$320 million.

One of those venture capital firms made the following comment…

Indian online consumers will be a significant driver of online growth in the world.’

Think about it. In a few years, no one will even remember the commentary around the US markets right now.

But India’s growing middle class isn’t going to fade away. Neither is that of Vietnam and South Korea. Or the other countries on the rim of China that increased trade will also lift.

Just on this…

The headlines now are focusing on the Fed. The market is worried that its monetary policy is too tight and it’s reducing its balance sheet.

It’s debatable whether this is a problem or not.

But did you know that the Chinese central bank is doing the exact opposite?

It’s loosening its monetary policy and providing extra liquidity for Chinese banks to make loans to the real economy.

This follows on from the following, according to Reuters:

To ward off a sharp growth slowdown, the [Chinese] government has in recent months unveiled a raft of policy measures, including cuts in banks’ reserve requirement ratio (RRR) to boost lending, tax cuts and steps to fast-track infrastructure projects.’

China just might surprise the world to the upside next year…and lift other emerging markets (and Australia!) alongside it.

Go here for my best strategy on how to play this idea.

Cheers,

Callum Newman Signature

Callum Newman,
Editor, Profit Watch

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