Trade To Black Podcast: Expectation Control Is The Way To Approach U.S. Cannabis Investing
On this episode of TDR’s Trade to Black Podcast, we welcome back Rob Sechrist, the Co-Founding President of Pelorus Equity Group—a specialty provider of real estate debt financing solutions in the cannabis industry. As a subject matter expert expert and frequent panelist at prestigious industry conferences around the country, Rob provides a balanced view of the current landscape in U.S. cannabis investing. From the importance of brands, to 280e, to managing expectations on the capital markets, Shadd and Rob break it all down.
TDR recently caught up with Rob at the Benzinga Cannabis Capital Conference held in Chicago on September 13-14.
One theme of interest on the podcast was investor positioning on the equity side of the ledger. With some positioning their portfolios for a potential shift in the federal regulatory landscape, Mr. Sechrist believes that may not be the ideal strategy, due to a variety of factors:
If you’re on the equity side, I would try to be in position where whatever investment you’re making, it’s not dependent on legislation changing. Legislation happens incrementally slow, and it always goes a direction that actually—probably is going to have more—repercussions that are worse than what it tried to fix. So be careful of what you wish for is what I’m saying.
Thus, Mr. Sechrist believes cannabis investing is best approached using a marathon mindset and avoiding short-term positioning that hinges on the actions of politicians. While something could break through in the current Congress, Rob opines that “it could be at least another administration until we get to something substantial” on federal cannabis policy changes.
As the self-professed “realist in the room” regarding SAFE Banking and federal regulatory passage, Rob is sticking with the message that’s proven prophetic over the past few months.
Click on the embedded link to view more of this TTB podcast with Pelorus Equity Group Co-Founding President, Rob Sechrist, in his own words.
To view our previous Trade To Black Podcast, click here.