A word on the theory that the currently underperforming pre-election stocks will outperform the best pre-election stocks after the election...
That is often true in many different scenarios when you are investing in a sector and you buy the cheaper names that haven't yet run while avoiding the stocks that have already gone on huge runs
BUT...
This MJ stock sector heading into the election is a very atypical scenario in many different ways
The way I envision what has happened so far is that there are 2 separate groups of buyers in the MJ sector
Those who have purchased MJ stocks before and those who haven't
So what % of those who have purchased MJ stocks in the past will purchase MJ stocks before the election, as opposed to after the election?
I say the vast majority of them will purchase MJ stocks BEFORE the election
And what % of those who have NEVER purchased MJ stocks in the past will purchase MJ stocks before the election, as opposed to after the election?
I say a small minority of them.
So what does this mean?
It means that the field has already chosen the pre-election winners and they are AMMJ, CNAB, and MCOA.
The pre-election winners will also be the post-election winners because the first time MJ stock buyers have already voted on their preferred stocks and whether they are voting before or after the election will not be a preference-changer.
It's analogous to predicting the winner of an election after only a small % of the vote is already counted -- if there is a large enough margin between 2 candidates, even after only 20% of the vote is counted, one can predict the winner because it is assumed that the small sample that has already been tallied is indicative of how the much larger sample that has yet to be tallied has voted.
And I think that is what we are looking at here.
I think about 20% of the "Never bought an MJ stock before" crowd have purchased stock before the election and the other 80% will be purchasing after the election.
Since the "never bought an MJ stock before" group will be driving the movement of these MJ stocks after the election because they will be the much larger group during that time period, the post-election winners have already been picked.
AMMJ
CNAB
MCOA
The top choices of the pre-election vote will also be the top choices of the post-election vote.
The early voters have cast their ballots and they are very representative of whom the later voters will choose.
THE GRAND SALAMI contains the best performing pre-election stocks, and given the unique circumstances surrounding the MJ sector during this election season, the best performing post-election stocks as well.
