Market Health

Checking In on Our 2018 Predictions

This is individual research and does not constitute investment advice.

As the weather gets crisper and the leaves begin to turn, it’s a reminder that there are only a couple months left of 2018.

So it’s time to address the predictions Matthew and David made last January for the markets in the year ahead.

Let’s check in to see how they did…

In the January issue of our monthly newsletter, Strategic Trends Investor (formerly Oxford Resource Explorer), Matthew predicted that the legalization of medicinal and recreational marijuana would be the story of 2018.

Needless to say, he called it…

In June, the Canadian government legalized marijuana nationwide. Starting next week, on October 17, recreational sales will finally begin.

In a recent Energy & Resources Digest article, Matthew explained that there’s a ton of potential in a certain area of this market:

I have stressed time and again that investors should ignore the dried flower market and focus on extracts, oils and concentrates….

Companies involved with cannabidiol (CBD)… are having a great year.

Since its lows in April, shares of GW Pharmaceuticals (Nasdaq: GWPH) have risen more than 40%. That may not seem like much compared with some of the meteoric rises in the sector. But the company was the first ever to receive FDA approval for a CBD treatment, its epilepsy drug Epidiolex.

That’s a significant milestone.

Meanwhile, hemp-based CBD drugmaker CV Sciences (OTC: CVSI) is having an even more impressive 2018. Shares have risen more than 733% this year!

Matthew says this is just the beginning…

According to the Brightfield Group, the U.S. CBD market is currently around $600 million. But this is just the beginning.

The firm believes that by 2020, it’ll surge to $11 billion. And $21 billion by 2022.

That’s nearly a fortyfold increase in just four short years. ‌ ‌ ‌ ‌ 

Based on Matthew’s track record, this trend is worth paying attention to. His marijuana recommendations have soared as high as 57% on OrganiGram Holdings (OTC: OGRMF), 110% on Cronos Group (Nasdaq: CRON), 198% on Aphria Inc. (OTC: APHQF) and 635% on Canopy Growth Corp. (NYSE: CGC).

But Matthew’s not alone in his spot-on forecasting abilities…

In the same issue of Strategic Trends Investor, Energy and Infrastructure Strategist David Fessler argued that we would hit the electric vehicle (EV) tipping point this year.

The EV tipping point is when EVs cost the same or less than their internal combustion engine counterparts.

According to Dave…

It seems that every week another car company announces it’s getting into the EV business with new EV models and plans for more. Just about every major manufacturer now has plans to enter this market.

During the first half of 2017, EVs grabbed an impressive 1.07% market share of all car sales. To be sure, EV sales are growing 20 times faster than the overall vehicle market.

Like just about anything else that’s manufactured, EVs have started to reap the benefits of mass production.

Sales are ramping up, and prices are coming down.

A big factor in Dave’s prediction is the availability of low-cost EVs. And that means everyone will be looking at Tesla’s production and delivery numbers for the Model 3 – the company’s first low-cost vehicle.

Given the recent headlines concerning an SEC lawsuit, production issues, the decision to go private and then not go private, and a disgruntled employee, there had been concerns that Tesla would be unable to meet expectations for the Model 3.

But as Dave has said, betting against Elon Musk is often a bad idea…

Earlier this month, Tesla released its third quarter production and delivery numbers. The company’s goal was to produce 50,000 to 55,000 Model 3s during the quarter. Instead, the automaker produced a staggering 83,500.

According to Dave, this is just another reason to believe that we’ve already reached the EV tipping point.

One thing is clear: Our experts have a knack for identifying big trends and capitalizing on them.

Good investing,