The Ultimate 2020 Guide To Investing In Canadian Psychedelic Stocks
This article was originally published on Microdose Psychedelic Insights and appears here with permission.
As groundbreaking scientific discoveries continue to illustrate the dynamic landscape of psychedelic medicine, many are seeking to invest in the emerging space. There are currently 12 publicly traded psychedelic companies, several of which are on the Canadian market. Many psychedelic enthusiasts and early investors are wondering how to buy Canadian psychedelic stocks and whether they should be adding them to their portfolio. This resourceful guide will answer these questions so you can start your journey as a psychedelic investor today!
The Socioeconomic Impact of Psychedelic Medicine
The incredible impact psychedelic medicine is poised to have on the global economy and mental healthcare stands to massively benefit the world at large. Historic clinical trials using psychedelics to treat end-of-life anxiety, addiction and depression have been conducted by some of the world’s leading research institutions. The results are nothing short of miraculous, with the efficacy of psychedelic drugs far surpassing traditional treatment modalities. By radically and effectively addressing these serious mental health concerns, psychedelics offer the promise of a healthier world filled with more human innovation. In turn, this is expected to collectively boost creativity, productivity and GDP across industries as people tap into their fullest potential.
The Psychedelic Renaissance in Canada
Alongside the United States, Canada has been a central player in the psychedelic renaissance. Their health minister Patty Hajdu made historic strides for the movement by approving four patients with terminal cancer for psilocybin therapy. Indeed, Canadian’s have definitely begun to witness more progressive drug policy changes in recent years–particularly as it relates to the legal regulations on psychedelics.
This resurgence of psychedelic medicine also comes at a critical time for Canadians, with the opioid epidemic sharply catalyzed by the current pandemic. In an earnest appeal to science and reason, Hajdu called upon the government of Alberta to keep their injectable opioid agonist treatment program open. Such progressive policy stances by the Canadian government bode well for the future of the industry at large.
Should You Invest in Psychedelic Medicine?
While no one can say with any certainty that psychedelic medicine stocks, or any stock for that matter, is a sure bet, the projections for psychedelics couldn’t possibly be more promising. With leading financial experts reporting price targets of $80 to $100 for Compass Pathways, for instance, it’s no surprise investors are eager to get in on the ground floor of this movement. The best way to become a strategic psychedelic investor is to carefully study the market and glean insights from experts in the space.
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Benefits of Investing in Psychedelic Stocks
A Thrilling Ride: A nascent industry still in the early stages of growth, psychedelics offer investors the adrenaline rush of breaking new developments and massive momentum on the capital markets.
- Room for Growth: As psychedelic medicine reveals its promise to the world, many new players are entering the space. From digital therapeutics to drug development, there’s a diversity of different ventures in this industry.
- A Stock You Might Believe In: Many invest in stocks for more than purely fiscal reasons. The idea of conscious capitalism comprises investors who align their investments with their intellectual and emotional values and beliefs. Considering the profoundly positive impact psychedelics are poised to offer the world, many are eager to invest in improving mental healthcare for the world at large
Risks of Investing in Psychedelic Stocks:
Psychedelics Are Still Mostly Illegal: While there has definitely been notable legislative progress for psychedelics, the fact remains that the majority of these compounds are still tightly scheduled and restricted in most, if not all of the world. Groundbreaking scientific studies are helping deconstruct oppressive and prohibitive drug policies, but that process is still very much unfolding.
- Psychedelics Are a Long-Term Play: This can be a good thing for the long-term investor, but not ideal for those looking to make a quick buck. While the markets have certainly seen their version of the “green rush” witnessed by cannabis, the real strategy of many psychedelic companies is set to unfold over the next 3-5 years.
- Cultural Stigma: While much progress has been made in reframing the narrative around psychedelic drugs, there is still a long way to go. In many ways, the medical cannabis movement helped catalyze the reintegration of plant medicines into our society. However, it has also highlighted the progress that has yet to be made.
The Middle Ground
Psychedelic medicine is undoubtedly establishing itself in not only Canada’s future, but the entire world. For those skeptical about investing in companies whose major pathway to profitability relies on legislative action, there are a variety of ancillary companies and intersecting industries that investors should pay attention to. The dynamic field of digital therapeutics as it pertains to mental health treatment and psychedelic medicine is a massive industry that is rapidly expanding. This allows investors to diversify their portfolios by including various companies that go beyond psychedelic drug development.
How Can You Invest in Canadian Psychedelic Stocks?
Equipped with this newfound understanding of Canadian psychedelic stocks, many may be wondering how they can start buying them. There are 2 major ways you can buy psychedelic stocks on the Canadian exchange.
Via a Financial Advisor
One way is to go through a trusted financial advisor who can help you with your economic goals by developing a personalized strategy for you. Canada has a very helpful site on how to pick an advisor), they can offer an excellent face-to-face opportunity to speak to someone about investing in psychedelics.
Using an Online Broker
Various online brokers offer investors the option to buy and trade stocks, bonds and ETF’s on their own from the comfort of their own homes. You can see from the summary table above that both TD Ameritrade and E-Trade allow you to purchase Canadian psychedelic stocks from the United States. Depending on the online broker, investors can buy stocks from Canadian stock exchanges, or purchase the US (PINK) or Frankfurt-based (FWB) alternative listings. This offers an excellent selection for traders around the world.
A Note about Buying Canadian Psychedelic Stocks in the United States
Most psychedelic stocks are available via US markets, appearing under different tickets to the Canadian market. For instance, MindMed trades under MMED on the NEO exchange, which is based in Canada. On the US OTC market, MindMed trades under the MMEDF ticker.
Psychedelic Stocks – Low Risk, Long-Term Strategy & High Reward
The last thing to know about investing in Canadian psychedelic stocks – or any psychedelic stocks, for that matter – is that you don’t have to go all in. Most of the publicly traded psychedelic stock options that are currently available are “penny stocks” – worth a dollar or less. Outliers to this rule are generally still incredibly affordable. The idea is, as the clinical mental health revolution begins, these stocks will increase dramatically in value. By diversifying your psychedelic portfolio, you can derisk while still maximizing returns. And since drug-development is as the core of capital investments in the psychedelic sector, patient investors with long-term strategies are the most likely to succeed.
Looking Ahead to the Investment Landscape for Canadian Psychedelic Stocks
That being said, this is the perfect opportunity to get your feet wet with investing in a low risk fashion. By buying a limited amount of shares, you can see first hand over time whether this is an avenue of interest for you or not. For many, watching the companies in this space navigate through regulatory approval processes is exciting. Indeed, it is likely that psychedelics will bring people to the stock market for the first time – and that’s great! Much like using psychedelics, it is always better to start with a lower dosage and monitor your experience accordingly.
Stay Plugged Into Microdose To Become A More Educated Psychedelic Investor
As the psychedelic renaissance continues to positively influence the capital markets, there’s no better time to start investing in psychedelic stocks. While developments in this industry seem to be unfolding at breakneck speeds, staying plugged into Microdose can help you stay up to date with all the latest news. From our monthly psychedelic capital series that brings together the top companies in the space to our expertly curated original content, the team at Microdose is committed to helping you stay informed and educated. So make sure to subscribe and stay tuned as the future is bright for psychedelics and we’re eager to bring you the latest insights on our collective journey there.
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Disclaimer: The content being published does not constitute a solicitation/recommendation to buy or sell securities
Read the original Article on Microdose Psychedelic Insights.
Benzinga's Related Links:
- 3 Reasons Psychedelic Investing May Be A Better Long Term Play Than Cannabis
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- Más de Microdose Psychedelic Insights en Español en El Planteo
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