Let’s look at a retail outlet where staff, although expertly trained, are not physicians or Nurse Practitioners. When one buys cannabis recreationally is it not also from an LP (but yes lower margins)? So even if a patient found their perfect prescribed strain recreationally, it is still sourced from an LP. As benefits coverage expands, the medical stream will also grow and be distinct. But once again, the aspect that few speak of – the recreational market legalization validates the medical stream. Many who were reluctant to talk to their Doctor about medical cannabis options now may do so. Doctors and Nurse Practitioners reluctant to explore medical cannabis options will now be more open to doing so.
One more aspect that many do not discuss - is inflation raising its head? Could be with the strange protectionist measures being taken by the US at this time with respect to tariffs against their greatest friend and ally – we the north (Canada). For the last few years the after-tax return on some familiar interest investments has been less than the annual inflation rate! If inflation rises due to tariffs then existing interest-bearing investments (bonds and debentures for example) become less valuable because you could buy a new bond or
debenture at a higher interest rate. Not only is your principal worth less (it will mature at full face value so fear not) but your loss to inflation only increases. Interest bearing investments in tax sheltered accounts have a buffer because there is no leakage to taxation in many cases; however, if your investment is earning 2% to 2.5% it may not be long before that is less than inflation. Non-interest reliant investments may provide superior returns and particularly in what will be a multi-billion-dollar cannabis industry plus Canada’s share of the potentially $1-Trillion global hemp industry. With so many out there giving advice and suggestions in other publications or on blogs, podcasts, social media, and bulletin boards - all asserting to be experts – how is it that this basic tenant to investing in today’s ultra low (but rising) interest rate environment is so often overlooked?
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