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Finance , Investing

Marijuana Trends and the Boiling Frog

August 14, 2018
Cody
Cody
marijuana boiling frog

The boiling frog story always seemed pretty ridiculous to me. The idea that a frog wouldn’t jump out of water that is slowly heated up just doesn’t make sense.

If you were to put a frog in a pot of room temperature water, then slowly heated up the water until it’s boiling, then perhaps the frog wouldn’t notice until it’s too late. Maybe the frog would be too warm and suddenly lose body control and be unable to jump out of the pot.

Or maybe… the frog would just jump out of the pot immediately when it realizes the water is too hot.

After a pretty thorough Google search, I can say that the boiling frog story is bogus. (Except for maybe one disturbing YouTube video I found along the boiling frog search last night.)

Although the boiling frog story doesn’t play out in the real world, the concept is entirely accurate. The difference is that humans are the ones who don’t notice change – especially when they slowly happen.

This is most relevant when we look at how governments have developed throughout the world. Little by little, there are more laws and regulations. Sooner or later, we’re all going to be living in one of those sci-fi movies where the government controls every action and thought. (There have been plenty of novels written about that topic, so I’ll stick to the marijuana theme instead.)

Let’s try to take a positive spin on the boiling frog story…

If you were in a supermarket in the US in the past couple of weeks, you might have seen this at the checkout stand:

Does that seem strange? To have marijuana so prominently displayed?

Not really. At least, I don’t think it’s that weird.

But, think about 5, 10, or even 20 years ago. If you had seen that on the cover of a major magazine, you would have been shocked. That’s because public sentiment towards cannabis is completely different today than it was just a short time ago.

If we look at what’s happening in Canada, it’s changing even faster. Many grocery stores will have marijuana dispensaries inside of them. You’ll literally be able to buy your milk, eggs, bread, and cannabis all in one stop.

We’ve gone from putting people in prison for life for possessing marijuana, to selling the plant in a grocery store… all within a span of about 20 years.

That’s why investing in cannabis will be one of the greatest opportunities of our lifetime.

Don’t read that sentence as, ‘you are guaranteed to make money.’ Instead, understand that if you pick the right companies to invest in, you will end up doing very, very well.

That said, right now in the publicly traded cannabis market there has been a large pull back. Most marijuana stocks are down significantly, and there could be even more downside ahead.

This is actually a good thing, as the cannabis market has been getting overbought. This small correction should be viewed as both a buying opportunity and a healthy retreat.

Again, we could continue to see a decline for a little while. But, if you have been waiting for a time to enter the cannabis market, you should definitely start to get ready to deploy your funds.

The easiest way to invest is to just pick the top companies in the market.

If you think you are late to the marijuana investment game, think again. Most people have been completely oblivious to the changes around them.