The “Marijuana Mecca of the Midwest”: What Everyone Should Know About Legalization in Illinois

Stocks are caught up in a storm of fear right now, although that may be abating somewhat. But plenty of otherwise great companies with little to nothing to do with the trade wars are getting caught up in the selling.

Pot stocks are a great example. The truth is cannabis companies aren’t really exposed to global trade conflicts, but they’ve been sliding along with most other shares.

Nevertheless, even knowing the facts – that the marijuana firms we’re buying are fundamentally sound – I know times like these make it difficult to hang tough and be patient.

After all, as the events of this week prove, things are unfolding in the cannabis market exactly as they should…

… particularly on the legalization front.

The announcement that Illinois – the sixth-most populous state in the Union – has taken cannabis fully legal should come as no surprise to us. But it’s still a huge development for the cause of legalization – and, for our purposes here, the quality cannabis stocks we own.

Let me tell you what it’s all about…

A Unique Way to Join a Growing Club

Most times, when a state opts for full cannabis legalization, it’s accomplished at the ballot box, through a referendum or some other popular vote mechanism.

Illinois has reached the same destination; it just took a different route. In the Land of Lincoln, the state legislature took up the question and put a bill on Governor J.B. Pritzker’s desk.

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Adults 21 or older who’d like to partake may possess up to 30 grams, and adult visitors to the state may possess up to 15 grams.

More importantly, the state is rolling out a unique tax structure. Remember: If taxes are too high, we could end up with another California on our hands.

In Illinois, sales will be taxed at 10% for THC levels at or less than 35%. Cannabis-infused products will be taxed at 20%, and 25% for THC concentrations of more than 35%.

Municipalities can add special taxes up to 3%, and counties tack on up to 3.75% in unincorporated areas.

Now, I believe taxes should be between 10% to 16%. Go much higher than that – like they did in California – and the market can suffer from underperformance.

If prices are too high, cannabis enthusiasts just turn to the black market. I’m still thinking about “supertaxes” on high-THC cannabis products.

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But I don’t want be too hard on Illinois just starting out, because the important thing is it’s moving forward with legalization.

It’s going to become what I’m calling the “Marijuana Mecca of the Midwest.” I know Michigan has legalized recreational marijuana, but with Illinois, you get Chicago. The winters are rough, but it’s a great sports town, and the Windy City actually set a new tourism record for itself in 2018 with 58 million visitors.

And as I mentioned earlier, this is going to benefit the companies in our model portfolios, especially one component of The Cannabis IPO Insider I recommended back in December 2018. Some have already experienced 100% gains, and with this move, more should be on the way.

It’s already a leader in the medical-use state program in Illinois, which puts it in a great position to lead the entire market when recreational sales begin rolling out. That’s significant, as current medical dispensaries will be the only legal sellers of recreational cannabis from Jan. 1 through the middle of 2020.

Again, I know the market has been difficult to stomach lately, but hang in there.

Everyone will eventually realize these stocks shouldn’t be taking a nose dive. In the meantime, take every dip as an opportunity to load up on strong companies like Constellation Brands Inc. (NYSE: STZ), Canopy Growth Corp. (NYSE: CGC), and Acreage Holdings Inc. (OTC: ACRGF) – and by all means, go here to get the chance to learn the names of three tiny companies that could spark a 1,000% windfall.

These 3 Stocks Are the Key to 2019’s Greatest Profits

We expect nothing short of historic profits by the end of the year.

But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.

These three stocks, on the other hand, are flying under the radar… for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.

I don’t know of any other sector providing anywhere near this level of growth now.

Click here to learn more.

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