• Pot stocks have languished in bear territory in 2019.
• Will Meade, former Goldman Sachs employee, sees the cannabis industry replicating the performance of the tobacco industry.
• The possibility of legalization in 16 other states might jolt the bleeding industry back to life.

Many pot stock investors are happy that 2019 is over. The cannabis industry, which was hailed as the next gold rush, was brutally clobbered last year as those who got in early dumped shares on bandwagoners. Pot-focused exchange-traded fund MJ lost over 30 percent of its value in 2019 as the industry entered a vicious bear market.

While it is possible for the cannabis bear market to persist in 2020, it is more likely that the industry will bottom out this year. Former Goldman Sachs analyst and now hedge fund manager Will Meade certainly thinks that the latter will be the case. More importantly, he believes that a small investment in pot stocks will generate millions in the next decades.

Will Meade: Marijuana Industry Is Recession Proof

A lot of people are avoiding pot stocks like it’s the plague as many got burned buying at the top. However, Will Meade says that marijuana stocks look exciting because the selloff in 2019 offers the rare opportunity to get in cheap.

It’s not just steeply discounted prices that attract the former Goldman Sachs employee. Will Meade explains how the cannabis sector shares similarities with the tobacco industry. Both asset classes are immune to the effects of a recession. On top of that, consumers are hooked to the products of both industries.

According to Mr. Meade, these similarities can propel cannabis stocks to gains of over 590,000 percent in the next 50 years. Thus, it may make sense to invest a few thousand dollars in a diversified basket of pot stocks to give yourself or your children a chance to reap tremendous profits.

Downtrodden Sector to Receive Boost From Possible Legalization in 16 States

If there’s one catalyst that can resurrect the bleeding cannabis sector, it’s the prospect of legalization in other states. The influx of fresh demand might just breathe life to the distressed industry.

As per Forbes, 16 states are likely to vote for marijuana legalization this year . Some states are looking at legalization for recreational use while others consider legalizing weed for medical purposes.

In Illinois, customers spent $3.2 million on the first day that the state legalized recreational weed . Dispensaries had to turn back customers due to statewide shortages. According to analysts, the market in Illinois alone is larger than the entire Canada legal weed market .

Moving forward, the key for the cannabis industry is to secure legalization in other big markets, such as New York and Florida. If that happens, other states are likely to follow suit.

According to Will Meade, 2020 will be a big year for the troubled pot sector. If legalization in other states pushes through, then it is likely that marijuana stocks could come back to life. However, don’t expect to generate millions from your $1,000 investment in a span of a few years.