Psychedelic investing strategies and financial market coverage. Interviews, portfolio, and stock insights for the leading companies in the mushroom and psilocybin space.
Investing in Psychedelics & Psilocybin Stocks
The psychedelic industry witnessed a breakout year in 2020, and the increased awareness of the space from both a financial and medical perspective makes it one of the hottest investing sectors of 2021.
Psilocybin has now been proven to have positive impacts on mental health and combat brain damage, and modern investors have taken note. The ‘Shroom Boom’ has arrived, and the industry will experience exponential growth as medical practitioners and state and federal lawmakers drive this taboo product into mainstream acceptance.
Psychedelic stocks are now being traded on the largest exchanges, and capital markets are now giving investors a variety of ways to invest in the space. From the thriving shroom stocks to brands centered on scientific and medicinal psychedelic research, the modern investor will discover that the psilocybin financial market extends far beyond some of the more publicized brands.
Investing in psycholodelic companies offers traders the opportunity to buy into a promising industry at the ground level. Financial analysts estimate that the medicinal psychedelic industry could reach a valuation of $7 billion by 2027, and legislative advancement of the psychedelic industry, and with a handful of US state legislators eyeing regulation, that target could be hit sooner.
With many of the nation’s top medical research facilities working to further advance the acceptance of the product, the psychedelic drug industry has the potential to explode once adopted as a mainstream medical alternative.
Garnering support from some of the top names in medicine, psychedelic brands are poised to disrupt numerous multi-billion dollar industries. The alcohol, health and wellness, pharmaceuticals, and the tobacco sectors are all subject to feeling the inevitable strain that advances in the psychedelic drug arena will create.
Psychedelic Stock Investing Hits Major Exchanges
The cannabis industry provided the perfect case study for early stage investors looking to profit off of the medical industries adoption of once highly controlled substances.
As wide medical acceptance spread, Canadian capital markets opened the doors for cannabis companies to become publicly traded. The sudden growth in the sector led to healthy returns for early marijuana investors. Where some felt the industry lacked proper management and relied on backyard business models, the success seen by cannabis brands on the stock market proved that this was more than a fad, rather an industry set to establish itself as a mainstay on financial markets worldwide.
Canadian capital markets are welcoming similar success with psychedelics, as investors now have access to a large number of public psychedelic stock listings.
Growth-stage industries have long enjoyed success on Canadian markets, with Canadian Securities Exchange becoming a breeding ground for start-ups.
Canadian Securities Exchange (CSE) CEO Richard Carleton openly addressed the inclusion of publicly traded psychedelics. His discussions with company owners and potential investors showed a clear interest in the emerging space, and both sides saw stock offerings and investment opportunities as mutually beneficial.
Carleton did express the need for psychedelic investors to closely monitor press releases and disclosures, as not all practices and products are legalized universally. This proved to be a headache for the exchange when cannabis investing exploded, and eventually to companies being asked to provide detailed documentation outlining the potential risks involved.
The recreational use of psychedelics has seen many compare it to the cannabis/marijuana industry, but Carleton predicts that the psychedelic stocks investment arena will more closely resemble that of the pharmaceuticals space. Both require extensive medical research and testing before going to market, and the approval process will likely be more strenuous.
Psilocybin Stocks Leading The Way
The psychedelic investing landscape remains young, but investors already have access to a handful of companies that are trading at impressive levels.
Those looking to invest in psychedelic stocks can do so through established companies that are expanding into the space through acquisitions and the purchase of diversifying options with brands working within the space.
There are, however, numerous companies debuting on the capital markets that are specifically focused on the psychedelic industry, and more particularly psilocybin. These companies largely focus on the advancement of the product as a medicinal supplement, and much of their business plan relies on research and development within the space.
Psychedelic stock offerings first garnered attention when the Toronto-based NEO exchange opened the doors for MindMed. With the goal of raising capital to fund their research and development into the use of psilocybin to combat opioid addiction, MindMed’s public market entrance was seen as a landmark move for the industry as a whole.
MindMed was clear in stating that their ambitions were centered around the medicinal benefits of psilocybin rather than recreational use. MindMed execs felt that the only future in the space would require USFDA approval of products containing psilocybin, and strictly for pharmaceutical and health benefits.
Psychedelic Investors Banking On The Future
Investors holding psychedelic stocks are largely hanging on to the promise of a widespread medical acceptance of the product’s health benefits. With clinical studies suggesting that psychedelics can help to combat anxiety and depression, brands are focusing their marketing and testing campaigns around issues concerning mental health and wellness.
The health and wellness industry has seen large growth over recent years. An increased awareness of issues concerning mental health combined with a growing acceptance to alternative medicines have made it a prime target for investors willing to follow the latest trends.
The psychedelic industry does closely relate to the cannabis sector in that it is far from being another flavor of the week, and both are poised to see long-term success.