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Psychedelics: Shroom to Grow – Investing Daily

I remember reading Aldous Huxley’s The Doors of Perception (1954) in high school and it blew my teenage mind. In the book, Huxley ruminates on the spiritual and psychological insights that he gained from taking psychedelic drugs. The rock group The Doors got their name from his book.

Huxley would have been astonished to learn that psychedelics are on the verge of becoming a mainstream consumer product. The movement to decriminalize psychedelics is accelerating throughout the U.S., giving birth to an exciting new investment theme.

According to research released on May 20 by Green Horizons, a consumer research firm focused on the cannabis and holistic health industry, four in 10 (38%) U.S. adults feel that psilocybin fungi (aka “magic mushrooms”) should be legal under at least some circumstances; 25% believe they should be legal under limited circumstances, such as medical or religious reasons; and 13% believe they should be legal under all circumstances.

Support for legalization varies by age. Among 18-34 year-olds, 45% believe psilocybin mushrooms should be legal under at least some circumstances; among 35-49 year-olds, 40%; and among 50+, just 23%. Support also is closely correlated with how much adults know about psychedelics. Seven in 10 (71%) 18-34 year-olds say that they know a little or a lot about psychedelics; this drops to 59% among 35-49 year-olds and 49% among 50+.

The following infographic tells the story:

Psychedelics’ reputation is changing, which in turn influences support for legalization. According to the Green Horizons study, 27% of U.S. adults feel that psychedelics, when used in moderation, are less dangerous than other legal substances, such as alcohol and tobacco. Three in 10 (29%) believe that psychedelics can be beneficial for a wide variety of mental health and physical issues, including treatment-resistant depression, anxiety, post-traumatic stress syndrome, and addiction.

Among those who say they have at least some knowledge of psychedelics, 43% feel that psychedelics can be less dangerous than other legal substances and nearly half (47%) believe psychedelics can be a beneficial medical treatment. Furthermore, among those who say they have some knowledge of psychedelics, support for legalization of psilocybin mushrooms rises to 53% (35% under limited circumstances; 18% under all circumstances).

The survey’s methodology: 1,000 online surveys among U.S. adults 18+ fielded in October 2019. Data has been weighted to ensure it is representative of U.S. adults.

Rocky mountain high…

Denver, Colorado last year became the first jurisdiction in the U.S. to decriminalize psilocybin fungi. The historic legal change enacted on May 7, 2019 triggered a seismic shift from cost-to-coast.

Read This Story: Psychedelic Mushrooms: A Real Trip (to the Bank)

Several mushroom species naturally contain the compound psilocybin, which has hallucinogenic properties. Magic mushrooms have earned a special place in story and song, but they’re illegal on the federal level and throughout states and localities.

The U.S. Department of Justice lists psilocybin as a Schedule I controlled substance. “Scheduling” is a system by which the U.S. Drug Enforcement Agency decides which substances are dangerous and which substances are medically useful. The Controlled Substances Act, the legislation surrounding the scheduling system, was created in 1970.

Official federal policy states that psychedelic fungi have no medicinal properties and are prone to abuse. Accordingly, it’s illegal to cultivate or possess psilocybin producing mushrooms for either personal consumption or distribution.

But as Bob Dylan sang, the times they are a-changin’. Activists in more than 100 cities across the U.S. are mobilizing this year to reform their own policies on psychedelics. Scores of initiatives are on state ballots for the November election.

Opening the doors to consumers…

In the mainstreaming of hallucinogenic substances, we’re seeing the birth of a new consumer industry. A similar dynamic, of course, has been occurring with cannabis.

In a clear sign that marijuana has become an everyday consumer substance, several states and localities have deemed recreational and medical pot as essential, amid a coronavirus pandemic that’s devastating the economy as a whole. Accordingly, pot sales are surging to record highs amid the COVID-19 outbreak.

Many states have legalized curbside or door-to-door delivery of marijuana, to make it easier and safer for quarantined citizens to obtain marijuana.

After undergoing a sharp correction in late 2019, many marijuana stocks are bouncing back, even as the broader stock market swoons, because of coronavirus-fueled sales.

Now’s the time to scoop up marijuana value plays, before their share prices get expensive again. For our special report on the best pot stocks to buy, click here now.

In the meantime, as the movement to “normalize” psychedelics gathers momentum, I’ll be keeping an eye out for the companies that are poised to benefit.

John Persinos is the editor-in-chief of Marijuana Investing Daily. You can reach him at: mailbag@investingdaily.com