How to Profit in a $29 Billion “New Biotech” Sector

I came of age in the late 1960s and early 1970s, which means I’m no stranger to recreational drugs, from pot to psychedelics. Like, I’ve seen things, man… and I could tell you some stories. Through it all, though, I was fascinated with the idea of psychedelics. I still am.

Tough to believe, but back then, LSD was still legal; research was going full-bore. And I understood these drugs had promise – real promise.

But that all ended in October 1968, when the federal government made it illegal to possess the hallucinogen.

Not surprisingly, a lot of very promising research slowly died. I’ve been following with interest what little research there has been in the meantime; not only is it interesting to me, but it’s part and parcel of my job as Chief Investment Strategist.

So, I wasn’t a bit surprised when, this past week, The New York Times broke news of an important, successful FDA phase 2 clinical study into the use of MDMA to treat severe post-traumatic stress disorder (PTSD) – “There is nothing like this in clinical trial results,” a neuroscientist said.

This is fantastic news for people suffering from a whole range of mental health conditions, but, and I’ll show you why, I think this is the ground floor of a market that could be worth more than $29 billion by the end of the decade.

Call it the “New Biotech,” or the “Shroom Boom,” – what you need to know is scientists are doing bold work, and several small companies are actively working in this space. They’re racing to harness and develop the, shall we say, “sky-high” potential of once-forbidden substances. It’s not at all dissimilar to what’s happening in cannabis right now, except the profit potential is even bigger.

The bottom line: I think folks in the right “psychedelic stocks” today are in position to clean up – the trip of your life – as this moves out of labs and into doctors’ offices. You’ll get the chance to learn about four companies I’m watching like a hawk in this space.

I’ll lay it on you straight…

Everything Old Is New Again in the “Shroom Boom”

Fascination and experimentation with psychedelics isn’t new. In fact, it’s very old. Caves in North Africa and on the Iberian Peninsula, dating back to 4,000 BCE, were decorated with drawings of animals and mushrooms, which anthropologists say were likely “magic mushrooms.”

From 1300 CE to 1521 CE, Mexico’s Aztecs incorporated psilocin and baeocystin-laced mushrooms, which they called “flesh of the Gods,” in rituals and ceremonies.

Today, what we know about psychedelics is that they come in two forms:

• Lab-derived “synthetics” like MDMA (ecstasy or molly), ketamine, phencyclidine (PCP), and LSD, synthesized from the ergot fungus that grows on grains.
• “Entheogens” – psychedelics derived from plants.

In 1897, Swiss chemist Albert Hofmann isolated mescaline from peyote, which native tribes up and down the Americas had been familiar with for centuries. In 1901, Jean…