1 00:00:05,559 --> 00:00:12,559 Speaker 1: Welcome to a trillions. I'm Joel Webber and I'm Eric Belchioness. Eric, 2 00:00:12,640 --> 00:00:20,440 Speaker 1: do you smoke marijuana? Not not present tense, but um, definitely. 3 00:00:20,440 --> 00:00:22,919 Speaker 1: I mean I was in college in the nineties. There's 4 00:00:23,000 --> 00:00:27,960 Speaker 1: a lot of interest in marijuana. Maybe you've noticed you think, yeah, 5 00:00:28,000 --> 00:00:31,320 Speaker 1: I mean, it's definitely. You can just you can feel 6 00:00:31,320 --> 00:00:33,879 Speaker 1: it and you can tell you smell it sometimes and 7 00:00:33,960 --> 00:00:36,200 Speaker 1: other times you can't smell it because it's a vaporiser. 8 00:00:36,640 --> 00:00:40,120 Speaker 1: Right in the e t F circuit quote unquote, it 9 00:00:40,200 --> 00:00:42,680 Speaker 1: comes up more And is there a potty t F 10 00:00:43,440 --> 00:00:45,800 Speaker 1: was one of the top things that I would be 11 00:00:45,800 --> 00:00:48,600 Speaker 1: asked about, just from people internally here knowing you know 12 00:00:48,640 --> 00:00:50,080 Speaker 1: that I'm et F guy, like, Hey, my wife is 13 00:00:50,080 --> 00:00:52,120 Speaker 1: wondering is there a potty t F? For many for 14 00:00:52,159 --> 00:00:54,360 Speaker 1: a couple of years that was a question. I got 15 00:00:54,400 --> 00:00:57,160 Speaker 1: a lot and there are, yeah, more than one. And 16 00:00:57,440 --> 00:01:02,320 Speaker 1: there was a big moment recently where Canada just legalize 17 00:01:02,360 --> 00:01:06,680 Speaker 1: this nationally. So it's the first G seven country to 18 00:01:07,640 --> 00:01:12,160 Speaker 1: legalize marijuana, recreational marijuana. Not only that, several states in 19 00:01:12,160 --> 00:01:15,240 Speaker 1: the United States are doing it, and obviously there's federal issues, 20 00:01:15,280 --> 00:01:17,720 Speaker 1: but you could kind of feel the cat out of 21 00:01:17,760 --> 00:01:20,000 Speaker 1: the bag to a degree. And I think this A 22 00:01:20,000 --> 00:01:22,759 Speaker 1: lot of people argue it's like the inpro prohibition, and 23 00:01:22,800 --> 00:01:25,319 Speaker 1: I think it's a big deal. When an industry goes 24 00:01:25,360 --> 00:01:28,880 Speaker 1: from no sales or nothing, or an underground market comes 25 00:01:28,880 --> 00:01:31,160 Speaker 1: to the surface and now is all you know, you 26 00:01:31,200 --> 00:01:33,520 Speaker 1: can capture that in terms of a new industry. So 27 00:01:33,640 --> 00:01:37,120 Speaker 1: it's major. So knowing all of that, Rachel Evans, Bloomberg 28 00:01:37,200 --> 00:01:40,880 Speaker 1: News reporter who we've teamed with multiple times, we asked 29 00:01:40,880 --> 00:01:43,839 Speaker 1: her to go go check this out for us, and 30 00:01:43,920 --> 00:01:45,840 Speaker 1: she went up to Canada did a little slew thing, 31 00:01:46,440 --> 00:01:50,560 Speaker 1: And this episode is all about Rachel booting the ground, 32 00:01:51,120 --> 00:01:53,640 Speaker 1: trying to figure out what's going on with marijuana ets 33 00:01:56,280 --> 00:02:08,840 Speaker 1: this weekend trillions, elevating your portfolio. Hello, can I'll possibly 34 00:02:08,880 --> 00:02:13,520 Speaker 1: get a coffee from you? Guys? Can I get a larteum? 35 00:02:13,919 --> 00:02:19,640 Speaker 1: Can you decare for me? Double? Be good? Actually? And 36 00:02:19,720 --> 00:02:23,120 Speaker 1: do you have any food at first? Next? The Cannabis 37 00:02:23,120 --> 00:02:26,880 Speaker 1: and Coffee Cafe in downtown Toronto isn't the most obvious 38 00:02:26,960 --> 00:02:31,520 Speaker 1: choice for a business meeting. Luridly colored bombs line the walls, 39 00:02:31,960 --> 00:02:35,160 Speaker 1: and leaflets promoting the pain relieving benefits of weed dot 40 00:02:35,160 --> 00:02:40,040 Speaker 1: the counter. But this is no ordinary rendezvous. I'm here 41 00:02:40,080 --> 00:02:44,680 Speaker 1: to meet Christine or Hum Bloomberg's dedicated marijuana reporter for 42 00:02:44,720 --> 00:02:47,760 Speaker 1: a virtual tour of the companies and products that are 43 00:02:47,800 --> 00:02:53,000 Speaker 1: thriving now that Canada's legalized weed. How's again, can see 44 00:02:53,000 --> 00:02:59,680 Speaker 1: you freezing? It's not too cold out it was. Unless 45 00:02:59,680 --> 00:03:01,880 Speaker 1: you've been hires a kite for the last twelve months, 46 00:03:02,160 --> 00:03:05,519 Speaker 1: you'll have seen, heard, or read something about this nascent industry. 47 00:03:06,040 --> 00:03:09,079 Speaker 1: Potstocks jumped a whopping this year, but it's been a 48 00:03:09,160 --> 00:03:12,800 Speaker 1: volatile ride, with as many lows as highs. But while 49 00:03:12,840 --> 00:03:15,560 Speaker 1: you can now smoke away your losses with state endorsed weed, 50 00:03:16,040 --> 00:03:19,280 Speaker 1: Toronto and the rest of Ontario won't sell it from 51 00:03:19,280 --> 00:03:22,720 Speaker 1: stores of cafes until next year, much to the disappointment 52 00:03:22,720 --> 00:03:29,520 Speaker 1: of my barristas, that is a beautifully depicted Cannabisly, if 53 00:03:29,560 --> 00:03:34,120 Speaker 1: you guys are very clever, do you ever said? Instead, 54 00:03:34,240 --> 00:03:37,240 Speaker 1: Christine and I take a scroll through a government run 55 00:03:37,240 --> 00:03:41,560 Speaker 1: website called the Ontario Cannabis Store, the only place in 56 00:03:41,560 --> 00:03:48,240 Speaker 1: Toronto where you can legally buy a weed. Here, anyone 57 00:03:48,280 --> 00:03:52,320 Speaker 1: over nineteen can choose between Sativa or Indica strains of 58 00:03:52,320 --> 00:03:56,640 Speaker 1: cannabis pre rolled joints or oils and compare prices across 59 00:03:56,680 --> 00:04:00,120 Speaker 1: scores of different brands. It's about ten Canadian dollar is 60 00:04:00,160 --> 00:04:03,440 Speaker 1: program roughly the amount needed for two joints, and you 61 00:04:03,480 --> 00:04:06,040 Speaker 1: can buy up to thirty grams about and ounce at 62 00:04:06,040 --> 00:04:09,040 Speaker 1: any one time. There are a lot of rules where 63 00:04:09,120 --> 00:04:12,600 Speaker 1: the logo company's logo can't be figured that this giant 64 00:04:12,600 --> 00:04:15,360 Speaker 1: THHC warning signs, so they're really and the it has 65 00:04:15,400 --> 00:04:18,679 Speaker 1: to be like plain pasting they have. They're really circling 66 00:04:18,720 --> 00:04:21,680 Speaker 1: like the colors and decoration they can use, so it 67 00:04:21,720 --> 00:04:25,240 Speaker 1: looks very law. You're very restricted in what you can 68 00:04:25,279 --> 00:04:28,520 Speaker 1: say about the products, so you can't say our marijuana 69 00:04:28,560 --> 00:04:31,800 Speaker 1: will make you feel amazing, or you know this show 70 00:04:31,839 --> 00:04:34,800 Speaker 1: people having a good time while smoking, and so how 71 00:04:34,839 --> 00:04:36,880 Speaker 1: do you raise brand awareness? Well, for a lot of 72 00:04:36,880 --> 00:04:41,400 Speaker 1: people are just reportedly coming from the black market. They 73 00:04:41,400 --> 00:04:43,520 Speaker 1: know a stream that they like, they're finding in the 74 00:04:43,520 --> 00:04:45,479 Speaker 1: store buying it, and they don't care what, what company 75 00:04:45,520 --> 00:04:49,880 Speaker 1: or what brand is coming around. Shopping for online is 76 00:04:49,920 --> 00:04:54,880 Speaker 1: a strange experience. Antique illustrations of marijuana leaves jostle with 77 00:04:54,960 --> 00:04:57,880 Speaker 1: warnings about health risks, and many of the most popular 78 00:04:57,920 --> 00:05:01,679 Speaker 1: products have already sold out. The breadth of the market 79 00:05:01,720 --> 00:05:05,120 Speaker 1: is certainly apparent, but so is the difficulty for both 80 00:05:05,160 --> 00:05:09,240 Speaker 1: smokers and investors in differentiating between a bad trip and 81 00:05:09,360 --> 00:05:14,240 Speaker 1: green gold. Enter exchange traded funds, there are I think 82 00:05:14,279 --> 00:05:17,440 Speaker 1: a hundred and forty or so publicly traded canabis companies, 83 00:05:17,600 --> 00:05:21,480 Speaker 1: and that that will very completely narrowed down to you know, 84 00:05:22,160 --> 00:05:25,400 Speaker 1: a dozen clear winners, right, so you're gonna see a 85 00:05:25,480 --> 00:05:28,839 Speaker 1: lot of consolidation, and you're gonna sees bankruptcies inevitably. I 86 00:05:28,880 --> 00:05:31,640 Speaker 1: think these companies are not always to survive. Rather than 87 00:05:31,680 --> 00:05:33,600 Speaker 1: trying to guess who the winners and losers are going 88 00:05:33,640 --> 00:05:36,159 Speaker 1: to be, to invest in a basket of stocks and 89 00:05:36,200 --> 00:05:37,960 Speaker 1: just say what I'm doing is anything about on the 90 00:05:37,960 --> 00:05:50,240 Speaker 1: industry as a whole. Steve Hawkins started the world's first 91 00:05:50,279 --> 00:05:55,400 Speaker 1: marijuana ETF in April two seventeen. The chief executive of 92 00:05:55,440 --> 00:05:59,760 Speaker 1: Horizons ETFs has always been something of a maverick, specializing 93 00:05:59,760 --> 00:06:02,680 Speaker 1: in the leverage and inverse products that inspire love or hate. 94 00:06:03,720 --> 00:06:06,520 Speaker 1: So the controversy around a potty t F held no fair. 95 00:06:07,800 --> 00:06:10,960 Speaker 1: The deviation returns from peak to traff that we've seen 96 00:06:11,000 --> 00:06:16,320 Speaker 1: on individual names is astronomical. It's just crazy, but when 97 00:06:16,360 --> 00:06:18,680 Speaker 1: you own the e t F, you're owning party exposure 98 00:06:18,680 --> 00:06:21,680 Speaker 1: to that party, exposure to this. It's still extremely volatile, 99 00:06:22,040 --> 00:06:25,600 Speaker 1: but it's still more lead. You even keeled standard deviation 100 00:06:25,600 --> 00:06:29,320 Speaker 1: of returns on a relative basis. I met Steve at 101 00:06:29,400 --> 00:06:32,080 Speaker 1: his offices a few blocks from the coffee shop to 102 00:06:32,200 --> 00:06:35,520 Speaker 1: learn how the Horizons Marijuana Life Sciences e t F 103 00:06:35,880 --> 00:06:39,480 Speaker 1: came to life. A blog his company ran for investors 104 00:06:39,839 --> 00:06:43,279 Speaker 1: kept throwing out requests for a potty TF. So in 105 00:06:43,320 --> 00:06:47,800 Speaker 1: the fall of he set about making that dream reality. 106 00:06:48,320 --> 00:06:51,520 Speaker 1: From the get go, it was a challenge. It was 107 00:06:51,560 --> 00:06:55,719 Speaker 1: a very new precedent for me in you know, having 108 00:06:55,839 --> 00:07:01,560 Speaker 1: launched you know, fifty six products over the past five years. Uh, 109 00:07:01,720 --> 00:07:05,120 Speaker 1: this was something completely different we've never seen before. Did 110 00:07:05,160 --> 00:07:07,000 Speaker 1: anyone think you were a little bit nuts when you 111 00:07:07,040 --> 00:07:08,599 Speaker 1: kind of came to them with this and said, you 112 00:07:08,640 --> 00:07:12,960 Speaker 1: know what, we want to put marijuana stocks in an? Absolutely? Absolutely, 113 00:07:13,080 --> 00:07:17,280 Speaker 1: And that's why it was. It was extremely sensitive subject matter. 114 00:07:17,680 --> 00:07:21,000 Speaker 1: There's such a negative stigma at that point in time 115 00:07:21,040 --> 00:07:24,520 Speaker 1: that was still associated with marijuana. Even with the development 116 00:07:25,040 --> 00:07:30,640 Speaker 1: an approval of medical marijuana and how integrated into Canadians lifestyle, 117 00:07:30,720 --> 00:07:33,920 Speaker 1: it was becoming you know, it was there was a 118 00:07:33,960 --> 00:07:36,679 Speaker 1: lot of silence on the other end of the phone 119 00:07:36,680 --> 00:07:39,080 Speaker 1: lines when when you asked the question, and it's like 120 00:07:39,440 --> 00:07:41,080 Speaker 1: all you could hear in the in the background was 121 00:07:41,120 --> 00:07:43,960 Speaker 1: the wheels clicking and people thinking, really you want to 122 00:07:44,000 --> 00:07:47,360 Speaker 1: do this? Wow, that's not something that we have traditionally 123 00:07:47,440 --> 00:07:50,480 Speaker 1: ever done. And you know, we went through, you know, 124 00:07:50,640 --> 00:07:54,280 Speaker 1: several layers of beer cratic approval at every single third 125 00:07:54,280 --> 00:07:56,320 Speaker 1: party service provider we went to, like, you know, it 126 00:07:56,360 --> 00:07:59,360 Speaker 1: didn't just stop at the partner or if it really 127 00:07:59,360 --> 00:08:01,040 Speaker 1: had to get escalate it to their boss and then 128 00:08:01,080 --> 00:08:06,040 Speaker 1: their boss. Eventually he persuaded an index custodian and market 129 00:08:06,040 --> 00:08:09,640 Speaker 1: maker to get on board, but Steve still needed buy 130 00:08:09,640 --> 00:08:13,200 Speaker 1: in from the Toronto Stock Exchange. The exchange had listed 131 00:08:13,200 --> 00:08:16,520 Speaker 1: a handful of cannabis companies, but anyt F of those 132 00:08:16,520 --> 00:08:19,360 Speaker 1: companies still made it squirm. Even once we've got all 133 00:08:19,400 --> 00:08:22,840 Speaker 1: the third party service providers lined up and the index 134 00:08:22,880 --> 00:08:25,880 Speaker 1: providers done, and we have figured out how we're going 135 00:08:25,920 --> 00:08:28,040 Speaker 1: to launch this and how we're going to management, then 136 00:08:28,200 --> 00:08:30,960 Speaker 1: I had to go through a very long process of 137 00:08:31,000 --> 00:08:33,920 Speaker 1: approval with the t SEX. Normally, with the t SEX, 138 00:08:34,000 --> 00:08:37,720 Speaker 1: it's pretty much switch and it's here's the information, here's 139 00:08:37,720 --> 00:08:40,880 Speaker 1: our application, here's our filing fee. Thank you, Steve, We've 140 00:08:40,880 --> 00:08:44,320 Speaker 1: got all the documentation switches on. It was a many 141 00:08:44,360 --> 00:08:47,840 Speaker 1: week process and dealing with the exchange their lawyers and 142 00:08:47,920 --> 00:08:52,840 Speaker 1: our lawyers. Numerous conference calls, numerous discussions. There was a 143 00:08:52,920 --> 00:08:59,000 Speaker 1: whole negotiation procure, but it was worth it. After eight months, 144 00:08:59,040 --> 00:09:02,680 Speaker 1: Steve's fund, which goes by the ticker h M m J, 145 00:09:03,559 --> 00:09:06,360 Speaker 1: launched a wave of publicity. I didn't want to be second. 146 00:09:06,679 --> 00:09:09,040 Speaker 1: I wanted to be the world's first, and we did 147 00:09:09,080 --> 00:09:11,839 Speaker 1: accomplish that. In hindsight, we probably could have waited to 148 00:09:11,920 --> 00:09:16,360 Speaker 1: four twenty or something like that, but you know, we 149 00:09:16,360 --> 00:09:19,079 Speaker 1: were We felt we were in competition with a group 150 00:09:19,080 --> 00:09:21,319 Speaker 1: in the US that was trying to launch a similar 151 00:09:21,360 --> 00:09:24,280 Speaker 1: product um and from a time in perspective, if I 152 00:09:24,320 --> 00:09:28,400 Speaker 1: had approval, I wanted to go. That fear didn't materialize. 153 00:09:28,760 --> 00:09:32,640 Speaker 1: In the US, cannabis remains illegal under federal law, and 154 00:09:32,720 --> 00:09:35,200 Speaker 1: want to be issuers of pop funds have struggled to 155 00:09:35,240 --> 00:09:39,720 Speaker 1: convince federally regulated companies like banks to supply back office 156 00:09:39,760 --> 00:09:51,040 Speaker 1: support Jeff's sessions. The U s Attorney General is stepping down, 157 00:09:51,120 --> 00:09:54,000 Speaker 1: apparently at the request of President Trump. This is a 158 00:09:54,080 --> 00:09:57,240 Speaker 1: huge moment for the cannabis industry. You might remember earlier 159 00:09:57,280 --> 00:10:01,400 Speaker 1: this year, back in February yourself, u acceptions laid down 160 00:10:01,440 --> 00:10:04,480 Speaker 1: the gauntlet on the cannabis industry. Uh he. With the 161 00:10:04,480 --> 00:10:08,240 Speaker 1: Attorney General Jeff Sessions now ousted, the cannabis industry has 162 00:10:08,280 --> 00:10:11,720 Speaker 1: outlasted one of its most vocal foes, but the Trump 163 00:10:11,760 --> 00:10:16,200 Speaker 1: administration probably won't budge overnight. Consequently, while there are a 164 00:10:16,200 --> 00:10:19,320 Speaker 1: handful of pot tyts in Canada, the US has just one, 165 00:10:20,280 --> 00:10:23,400 Speaker 1: The e t f MG Alternative Harvest TTF, which goes 166 00:10:23,440 --> 00:10:26,640 Speaker 1: by the ticket MJ started life as a Latin American 167 00:10:26,679 --> 00:10:29,800 Speaker 1: real estate fund, side stepping the startup challenges that to 168 00:10:29,880 --> 00:10:33,480 Speaker 1: plague the ambitions of others. It's it's very unfortunate for 169 00:10:34,120 --> 00:10:38,040 Speaker 1: the US cannabis industry that the government really hasn't been 170 00:10:38,040 --> 00:10:40,480 Speaker 1: able to see the writing on the law as we 171 00:10:40,559 --> 00:10:44,400 Speaker 1: have in Canada, and Canada was the first G seven 172 00:10:44,440 --> 00:10:46,920 Speaker 1: country to go recreational approved, and I think there will 173 00:10:46,960 --> 00:10:50,400 Speaker 1: be more to follow long before the US. Right now, 174 00:10:50,520 --> 00:10:52,800 Speaker 1: we have the ability to go outside of Canada to 175 00:10:52,880 --> 00:10:57,520 Speaker 1: put boots on the ground operations, to export product into 176 00:10:57,559 --> 00:11:01,079 Speaker 1: these companies or countries on a worldwide basis. So we're 177 00:11:01,200 --> 00:11:04,880 Speaker 1: creating a globalization of the cannabis industry. And it's interesting 178 00:11:04,880 --> 00:11:07,680 Speaker 1: that it's Canada that's driving it, not the US, and 179 00:11:07,720 --> 00:11:12,240 Speaker 1: we have a significant competitive advantage over the Americans. Right now, 180 00:11:12,280 --> 00:11:15,320 Speaker 1: we've got our footh hall, but the winds of change 181 00:11:15,360 --> 00:11:20,040 Speaker 1: may be blowing. More than six of Americans support legalization, 182 00:11:20,600 --> 00:11:23,400 Speaker 1: and more and more states are putting medical and even 183 00:11:23,440 --> 00:11:27,640 Speaker 1: recreational use on the ballot. Some estimate that the U 184 00:11:27,760 --> 00:11:32,600 Speaker 1: s pot market could grow to billion, and the global 185 00:11:32,679 --> 00:11:35,600 Speaker 1: market could eventually be worth a hundred and fifty billion. 186 00:11:39,640 --> 00:11:42,760 Speaker 1: But for others, the pots stock craze is just that, 187 00:11:43,280 --> 00:11:46,719 Speaker 1: a craze that won't last long. That's the thinking of 188 00:11:46,800 --> 00:11:50,000 Speaker 1: Jared Dillion, who ran the ETF desk at Lehman Brothers 189 00:11:50,040 --> 00:11:53,199 Speaker 1: in two thousand and eight. Now editor of the Daily 190 00:11:53,280 --> 00:11:56,760 Speaker 1: Dirt napp and market newsletter, He's seen his fair share 191 00:11:56,760 --> 00:11:59,960 Speaker 1: of bubbles and thinks the pot industry's potential is limited. 192 00:12:00,400 --> 00:12:04,800 Speaker 1: Even in the US. Culturally, we have already reached peak 193 00:12:04,880 --> 00:12:12,720 Speaker 1: acceptance of marijuana um even though it's not completely legal. 194 00:12:12,880 --> 00:12:17,520 Speaker 1: This is the highs and acceptance. The projections are understandable, 195 00:12:17,720 --> 00:12:21,880 Speaker 1: you know, given how optimistic people are about how widespread 196 00:12:21,960 --> 00:12:25,200 Speaker 1: or pervasive use of this stuff could get. People like 197 00:12:25,280 --> 00:12:27,679 Speaker 1: the dream big in certain trades, and this is a 198 00:12:27,720 --> 00:12:31,320 Speaker 1: trade where you can dream big. But the problem is 199 00:12:31,440 --> 00:12:36,800 Speaker 1: is that the stocks basically priced in all that growth 200 00:12:36,920 --> 00:12:42,040 Speaker 1: almost immediately. Valuations are certainly looking to the future. Till Ray, 201 00:12:42,240 --> 00:12:44,760 Speaker 1: which was worth fifteen billion dollars at the height of 202 00:12:44,800 --> 00:12:48,000 Speaker 1: the potstock rally, has only about ten million dollars in 203 00:12:48,080 --> 00:12:52,080 Speaker 1: revenue last quarter. Steve Can sees that there's a lack 204 00:12:52,120 --> 00:12:54,839 Speaker 1: of hard data, but it's bullish on the market over 205 00:12:54,840 --> 00:12:58,920 Speaker 1: the long term. This is an extremely rumor mill driven industry. 206 00:12:58,960 --> 00:13:00,880 Speaker 1: There's no doubt of it. I've never seen anything like 207 00:13:00,960 --> 00:13:03,600 Speaker 1: it from history. You know, you can have every stock 208 00:13:03,640 --> 00:13:06,120 Speaker 1: down and then there's a little rumor about coke and 209 00:13:06,160 --> 00:13:08,160 Speaker 1: such and such are Pepsi and such and such are 210 00:13:08,480 --> 00:13:10,960 Speaker 1: Molson Coors and such and such, and that company stock 211 00:13:11,040 --> 00:13:15,199 Speaker 1: is up in literally five minutes, and and that has 212 00:13:15,240 --> 00:13:17,920 Speaker 1: a waterfall effect to all the companies in the industry. 213 00:13:18,400 --> 00:13:21,240 Speaker 1: You know, the industry is still new. There's still isn't 214 00:13:21,240 --> 00:13:25,199 Speaker 1: a lot of known quantitative facts with respect to how 215 00:13:25,240 --> 00:13:27,720 Speaker 1: big the industry is going to grow from here. With 216 00:13:27,800 --> 00:13:31,120 Speaker 1: the recreational approval, and it will be very very interesting 217 00:13:31,240 --> 00:13:35,280 Speaker 1: to see where this company stands when these cannabis companies 218 00:13:35,320 --> 00:13:39,520 Speaker 1: have to do all their financial regulatory reporting and we 219 00:13:39,559 --> 00:13:43,800 Speaker 1: actually start to see hard financial results that you get 220 00:13:43,840 --> 00:13:47,400 Speaker 1: introduced by the analysts on the street and um, and 221 00:13:47,520 --> 00:13:52,240 Speaker 1: what these companies are you know, actually producing so um. 222 00:13:52,280 --> 00:13:54,600 Speaker 1: If you want to invest in this space, it's not 223 00:13:54,640 --> 00:13:56,839 Speaker 1: for the faint of heart. You need to check the 224 00:13:56,880 --> 00:13:59,320 Speaker 1: batteries and your pacemaker and you have to look at 225 00:13:59,320 --> 00:14:09,120 Speaker 1: it from my perspect give as a long term investment. Okay, 226 00:14:09,120 --> 00:14:11,680 Speaker 1: so let's come down off that high. Rachel, thanks for 227 00:14:11,720 --> 00:14:14,040 Speaker 1: doing this trip to Canada for us. Thanks for having 228 00:14:14,040 --> 00:14:17,720 Speaker 1: me again. So what have you learned about this space 229 00:14:18,200 --> 00:14:21,280 Speaker 1: both through the reporting for this podcast and also leading 230 00:14:21,360 --> 00:14:23,920 Speaker 1: up to it. I think what I really took away 231 00:14:23,920 --> 00:14:25,920 Speaker 1: from this it is kind of like what potential and 232 00:14:26,000 --> 00:14:29,560 Speaker 1: yet also how hard it is to actually estimate how 233 00:14:29,600 --> 00:14:32,080 Speaker 1: big that potential is going to be. It's like reality 234 00:14:32,200 --> 00:14:35,640 Speaker 1: versus potential exactly, and that's everybody's trading off the potential 235 00:14:35,680 --> 00:14:37,680 Speaker 1: at the moment, and that's why you're seeing where you saw, 236 00:14:37,760 --> 00:14:40,520 Speaker 1: I guess this huge potstock rally earlier in the year, 237 00:14:40,840 --> 00:14:43,120 Speaker 1: but talking to kind of some people around the industry, 238 00:14:43,240 --> 00:14:46,360 Speaker 1: it really depends on how that translates into actual sales 239 00:14:46,400 --> 00:14:49,160 Speaker 1: of weed now that weed is legal in Canada, and 240 00:14:49,200 --> 00:14:52,240 Speaker 1: how that translates into revenue. I thought was really interesting 241 00:14:52,240 --> 00:14:55,720 Speaker 1: stat that I mentioned the report Tilray had a market 242 00:14:55,760 --> 00:14:59,120 Speaker 1: capitalization of fifteen billion at its peak, but it's revenue 243 00:14:59,200 --> 00:15:01,640 Speaker 1: last quarter was only ten million. I mean that shows 244 00:15:01,640 --> 00:15:03,560 Speaker 1: you kind of like how much these things have been 245 00:15:03,600 --> 00:15:06,520 Speaker 1: inflated in terms of their valuation, and we won't actually 246 00:15:06,560 --> 00:15:09,560 Speaker 1: start to see kind of like financial reporting until next year. 247 00:15:09,720 --> 00:15:11,240 Speaker 1: That's when we're going to start to really see that 248 00:15:11,280 --> 00:15:13,160 Speaker 1: the rubber hit the road, as it were, and see 249 00:15:13,200 --> 00:15:16,200 Speaker 1: whether some of these valuations really hold up. I have 250 00:15:16,240 --> 00:15:17,760 Speaker 1: a question for you, Well, one thing I thought was 251 00:15:17,800 --> 00:15:21,840 Speaker 1: interesting was you said this caught pain relieving benefits, And 252 00:15:21,920 --> 00:15:24,840 Speaker 1: to me, this is one of these big points because 253 00:15:25,040 --> 00:15:28,200 Speaker 1: if this can be put forth as a substitute for 254 00:15:28,240 --> 00:15:32,040 Speaker 1: the for opioids, which is a huge problem here, it 255 00:15:32,040 --> 00:15:34,120 Speaker 1: almost feels like you can maybe win over even the 256 00:15:34,160 --> 00:15:36,480 Speaker 1: most conservative people that would did that come up a lot? 257 00:15:36,560 --> 00:15:38,600 Speaker 1: Is that a big point? I mean, this was the 258 00:15:39,000 --> 00:15:41,160 Speaker 1: topic of the leaflets in the cafe. I went to 259 00:15:41,240 --> 00:15:44,000 Speaker 1: CBD um. This is kind of like the property within 260 00:15:44,120 --> 00:15:46,440 Speaker 1: cannabis that allows you to kind of like ease away 261 00:15:46,520 --> 00:15:48,960 Speaker 1: some of those pains. And yeah, the opioid point really 262 00:15:48,960 --> 00:15:51,160 Speaker 1: did come up. I was chatting with one of the baristas, 263 00:15:51,160 --> 00:15:53,320 Speaker 1: a guy called Joe, and he was telling me that 264 00:15:53,360 --> 00:15:55,480 Speaker 1: he used to be addicted to opioids. He had some 265 00:15:55,560 --> 00:15:56,960 Speaker 1: after he had I think it was a car crash, 266 00:15:57,000 --> 00:15:59,040 Speaker 1: he said, And he was addicted to opioids for about 267 00:15:59,080 --> 00:16:02,240 Speaker 1: five to seven years. Is then he started smoking marijuana. 268 00:16:02,280 --> 00:16:04,400 Speaker 1: And as he said, it wasn't so much a gateway drug, 269 00:16:04,480 --> 00:16:06,320 Speaker 1: is an exit drug for him. That allowed him to 270 00:16:06,320 --> 00:16:09,800 Speaker 1: come off the hard arapioids. That's powerful because that will 271 00:16:09,840 --> 00:16:11,520 Speaker 1: win over the people who just look at it as 272 00:16:11,560 --> 00:16:16,440 Speaker 1: a good time. Still not legal in the US everywhere, 273 00:16:16,600 --> 00:16:19,320 Speaker 1: I mean certain places, right, but you can still invest. 274 00:16:19,400 --> 00:16:22,640 Speaker 1: It is legal to invest. A great ticker here, m J, right, 275 00:16:23,520 --> 00:16:25,080 Speaker 1: so MJ is the one in the US. Let me 276 00:16:25,080 --> 00:16:27,240 Speaker 1: give you a few caveats here. First of all, the 277 00:16:27,280 --> 00:16:32,000 Speaker 1: way MJ happened was a little unusual. It was a 278 00:16:32,040 --> 00:16:34,360 Speaker 1: ticker called Layer, which was a Latin America real estate 279 00:16:34,760 --> 00:16:36,440 Speaker 1: and it was from a white label issuer who I 280 00:16:36,480 --> 00:16:39,360 Speaker 1: guess had ultimate power and decided, we don't like what 281 00:16:39,520 --> 00:16:42,440 Speaker 1: Layers doing. It doesn't make money. Let's just switch it 282 00:16:42,480 --> 00:16:44,840 Speaker 1: over the strategy, the name, and the ticker, everything, and 283 00:16:44,840 --> 00:16:46,720 Speaker 1: we'll make it a potty t F. And I think 284 00:16:46,720 --> 00:16:49,320 Speaker 1: it was last December, you just woke up, and I 285 00:16:49,320 --> 00:16:53,240 Speaker 1: think it was after Christmas. American Now I owned marijuana 286 00:16:53,320 --> 00:16:55,800 Speaker 1: the good nobody really owned Layers, So there probably was 287 00:16:55,880 --> 00:16:58,720 Speaker 1: maybe the guy's family weren't was in it maybe at best. 288 00:16:59,240 --> 00:17:01,960 Speaker 1: And then MJ immediately I think it got a couple 289 00:17:02,080 --> 00:17:04,399 Speaker 1: hundred million right off the bat. There was definitely it 290 00:17:04,400 --> 00:17:09,000 Speaker 1: tapped into to some demand. Now there's since then, Uh, 291 00:17:09,040 --> 00:17:12,879 Speaker 1: there's issue with the company's custodian. This company is also 292 00:17:13,560 --> 00:17:17,679 Speaker 1: dealing with a lawsuit multiple I think, and this company 293 00:17:17,680 --> 00:17:19,960 Speaker 1: has always kind of got this sort of cloud over it, 294 00:17:19,960 --> 00:17:25,720 Speaker 1: and I just think that's important to know here with yeah, um, 295 00:17:25,800 --> 00:17:28,840 Speaker 1: but you know, at this time, MJ is a ticker, 296 00:17:28,960 --> 00:17:32,240 Speaker 1: it trades, it tracks the index, although we actually looked 297 00:17:32,240 --> 00:17:34,800 Speaker 1: at MJ and it does trail the index by about 298 00:17:34,880 --> 00:17:38,520 Speaker 1: ten percent over the past year. The reason is is 299 00:17:38,560 --> 00:17:41,600 Speaker 1: because their custodian wasn't letting them do securities lendings. So 300 00:17:41,640 --> 00:17:44,040 Speaker 1: it wasn't able to make any money back, and til 301 00:17:44,119 --> 00:17:45,879 Speaker 1: Ray was so hard to buy when they tried to 302 00:17:45,920 --> 00:17:48,879 Speaker 1: rebalance into it that they were the index doesn't have 303 00:17:48,920 --> 00:17:51,400 Speaker 1: to actually buy stocks, and it's like lives in a vacuum. 304 00:17:51,640 --> 00:17:53,320 Speaker 1: The e t F was unable to buy until Ray 305 00:17:53,359 --> 00:17:56,359 Speaker 1: fast enough to match the index, so it lags a 306 00:17:56,359 --> 00:17:58,840 Speaker 1: little bit. But those are just some caveats to know, 307 00:17:59,520 --> 00:18:03,360 Speaker 1: but it because it's the only one, UH, people overlook 308 00:18:03,359 --> 00:18:05,800 Speaker 1: almost all that. One thing interesting to kind of like 309 00:18:05,840 --> 00:18:07,680 Speaker 1: just chime in on that is with h mm J, 310 00:18:07,960 --> 00:18:10,240 Speaker 1: that the one in Canada. I got talking to see 311 00:18:10,320 --> 00:18:12,480 Speaker 1: a bit about who owns that, and it was really 312 00:18:12,480 --> 00:18:15,840 Speaker 1: interesting to me. I think he said, like sevent is 313 00:18:15,880 --> 00:18:18,760 Speaker 1: owned by Canadians, but the other thirty percent is owned 314 00:18:18,760 --> 00:18:21,040 Speaker 1: by non Canadians. They get some of that data through 315 00:18:21,040 --> 00:18:23,800 Speaker 1: their transfer agent because they have to report it in Canada, 316 00:18:24,000 --> 00:18:25,760 Speaker 1: which I thought was fascinating. He said that they've seen 317 00:18:25,760 --> 00:18:29,840 Speaker 1: buyers from the UK, from Israel, from Asia, so there's 318 00:18:29,880 --> 00:18:33,200 Speaker 1: clearly interest in buying h MMJ, not just within Canada, 319 00:18:33,240 --> 00:18:36,640 Speaker 1: but actually externally as well. UM, and you know hm 320 00:18:36,800 --> 00:18:38,480 Speaker 1: m J, the one in Canada that was the first 321 00:18:38,600 --> 00:18:41,160 Speaker 1: to market in the world, Um. What was interesting about 322 00:18:41,200 --> 00:18:44,440 Speaker 1: that one is it came out and obviously I think 323 00:18:44,440 --> 00:18:46,440 Speaker 1: it got I don't know, I want to say, five 324 00:18:47,119 --> 00:18:50,280 Speaker 1: million dollars pretty quickly, and then it fell. Um it 325 00:18:50,320 --> 00:18:52,040 Speaker 1: came out after a long run in part, but then 326 00:18:52,080 --> 00:18:54,320 Speaker 1: after the e t F came out, it dropped. And 327 00:18:54,480 --> 00:18:57,040 Speaker 1: normally when a new e t F comes out, especially 328 00:18:57,040 --> 00:18:59,920 Speaker 1: a high flyer goes down, people leave, they don't stick around. 329 00:19:00,520 --> 00:19:03,719 Speaker 1: But nobody left. The assets stuck stuck there, and it's 330 00:19:03,800 --> 00:19:08,800 Speaker 1: highly unusual. That's why pot investors maybe the best investors. 331 00:19:08,800 --> 00:19:12,240 Speaker 1: If you're an issuer, they either forgot or again. They're 332 00:19:12,240 --> 00:19:14,439 Speaker 1: tapping into people who believe in the story for the 333 00:19:14,480 --> 00:19:17,120 Speaker 1: long term. And I think that that's just an interesting 334 00:19:17,200 --> 00:19:19,400 Speaker 1: data point about h M m J. And that's something 335 00:19:19,440 --> 00:19:21,760 Speaker 1: that that Steve brought up of horizons as well. I mean, 336 00:19:21,800 --> 00:19:23,720 Speaker 1: he was saying that, you know, this is a very 337 00:19:23,800 --> 00:19:27,159 Speaker 1: volatile play. If you're going into potstocks, even in an 338 00:19:27,160 --> 00:19:29,080 Speaker 1: e t F form, you need to be very well 339 00:19:29,119 --> 00:19:31,840 Speaker 1: aware that you could go very far down as well 340 00:19:31,920 --> 00:19:34,560 Speaker 1: as very high. So you need to be thinking about 341 00:19:34,560 --> 00:19:36,000 Speaker 1: that when you invest in his His thing is you 342 00:19:36,200 --> 00:19:37,959 Speaker 1: check your pacemaker. If there's got to be in there 343 00:19:38,040 --> 00:19:40,200 Speaker 1: for the long hall. Right on that note, in terms 344 00:19:40,240 --> 00:19:42,720 Speaker 1: of hanging there during volatility, I thought what Christine said 345 00:19:42,720 --> 00:19:46,119 Speaker 1: the reporter from Canada that a hundred and forty publicly 346 00:19:46,160 --> 00:19:48,840 Speaker 1: traded cannabis names will be narrowed down to a dozen. 347 00:19:49,400 --> 00:19:53,080 Speaker 1: Consolidation that E t F isn't is could be really 348 00:19:53,359 --> 00:19:55,720 Speaker 1: helped out by M and A, especially if you see 349 00:19:55,720 --> 00:19:58,800 Speaker 1: that kind of consolidation UM from especially these big tobacco 350 00:19:58,840 --> 00:20:01,840 Speaker 1: companies start buying up these small pot stocks. Um, that 351 00:20:01,920 --> 00:20:04,600 Speaker 1: was a good point. What will that look like? Uh 352 00:20:04,640 --> 00:20:06,480 Speaker 1: in the e t F. Then as that starts to 353 00:20:06,520 --> 00:20:09,560 Speaker 1: happen as an allist, how do you look at that? Well, 354 00:20:09,920 --> 00:20:12,119 Speaker 1: when you have these small ETFs like um, that a 355 00:20:12,200 --> 00:20:14,679 Speaker 1: stock could go up fifty in a day, you have 356 00:20:14,720 --> 00:20:17,760 Speaker 1: no way knowing that targets are the ones that benefit, right, 357 00:20:17,840 --> 00:20:20,520 Speaker 1: So uh, we would see a big bump in the 358 00:20:20,520 --> 00:20:24,080 Speaker 1: e t F. Although diversification helps you obviously in downturns, 359 00:20:24,080 --> 00:20:25,800 Speaker 1: but it also limits your up so you wouldn't feel 360 00:20:25,800 --> 00:20:27,680 Speaker 1: all that fifty percent. You might feel like might lift 361 00:20:27,680 --> 00:20:29,320 Speaker 1: the e t F like six percent, but that's a 362 00:20:29,880 --> 00:20:32,320 Speaker 1: that's better than not and that's the thing I mean. 363 00:20:32,359 --> 00:20:34,560 Speaker 1: Christine also mentioned that you know, there there will be 364 00:20:34,600 --> 00:20:36,240 Speaker 1: some people out there that will be the you know, 365 00:20:36,280 --> 00:20:38,320 Speaker 1: the equivalent of the Apple investors. Oh, I was there 366 00:20:38,320 --> 00:20:40,520 Speaker 1: in the beginning. I owned Apple, But you know, and 367 00:20:40,560 --> 00:20:42,640 Speaker 1: people will be doing that with certain pot stocks. But 368 00:20:42,680 --> 00:20:44,640 Speaker 1: if you want to take a long term play on 369 00:20:44,720 --> 00:20:47,280 Speaker 1: pots and you don't know which of the companies out 370 00:20:47,280 --> 00:20:49,600 Speaker 1: there are going to be targets or acquirers, then you 371 00:20:49,680 --> 00:20:51,280 Speaker 1: might as well think about this from a kind of 372 00:20:51,320 --> 00:20:54,439 Speaker 1: broad diversification sector. I mean, that's what an ETF does, right. 373 00:20:54,760 --> 00:20:57,800 Speaker 1: What I liked about this was the physical nature of it, 374 00:20:58,520 --> 00:21:00,400 Speaker 1: and I sometimes think a part in bit point they've 375 00:21:00,400 --> 00:21:02,719 Speaker 1: always been linked to, like you know, stuff that's been 376 00:21:02,720 --> 00:21:05,520 Speaker 1: a craze in the last five years. But bitcoin, you 377 00:21:05,640 --> 00:21:08,720 Speaker 1: there's no stores, you can't touch it. It's not usually 378 00:21:08,760 --> 00:21:12,320 Speaker 1: as currency. Here you went to stores, there's there's people 379 00:21:12,359 --> 00:21:15,800 Speaker 1: working there, you can buy it. Did did did it 380 00:21:15,920 --> 00:21:20,120 Speaker 1: change for use? Like actually seeing it literally there physically. 381 00:21:20,200 --> 00:21:21,800 Speaker 1: I Mean the thing in Ontario is is that it's 382 00:21:21,880 --> 00:21:24,160 Speaker 1: kind of like in transitionary phase, right. I Mean, you've 383 00:21:24,200 --> 00:21:26,960 Speaker 1: still the only place you can legally buy weed is 384 00:21:27,000 --> 00:21:29,679 Speaker 1: online in Ontario, So that's kind of strange. Let's go 385 00:21:29,720 --> 00:21:32,840 Speaker 1: through a government website, and by part like it feels 386 00:21:32,840 --> 00:21:35,920 Speaker 1: sort of, you know, like you're stepping over a boundary there. 387 00:21:36,200 --> 00:21:38,240 Speaker 1: But I mean you could still buy it from dispensaries 388 00:21:38,240 --> 00:21:40,280 Speaker 1: that were on the streets that were selling it illegally. 389 00:21:40,359 --> 00:21:42,119 Speaker 1: I think they are cracking down on that because now 390 00:21:42,200 --> 00:21:44,800 Speaker 1: obviously we'd equals tax dollars, so that's something they want 391 00:21:44,800 --> 00:21:46,240 Speaker 1: to kind of push out. But I thought it was 392 00:21:46,280 --> 00:21:48,480 Speaker 1: really interesting. I mean that the coffee shop I went 393 00:21:48,480 --> 00:21:51,399 Speaker 1: to was called Cannabis and Coffee. People are ready for 394 00:21:51,560 --> 00:21:54,320 Speaker 1: when weed is available to be sold as edibles and 395 00:21:54,359 --> 00:21:57,120 Speaker 1: coffee shops, and they want to have a dispensary also 396 00:21:57,160 --> 00:21:59,800 Speaker 1: in in that coffee shop upstairs. Then you can actually 397 00:21:59,800 --> 00:22:01,520 Speaker 1: buy you know, how to paper bag and take it 398 00:22:01,560 --> 00:22:05,040 Speaker 1: home with you. As as it stands, now, you can 399 00:22:05,080 --> 00:22:09,080 Speaker 1: buy specific e t F s that are in this sector. Right. 400 00:22:09,200 --> 00:22:14,360 Speaker 1: I'm also interested in will will these stocks or aspects 401 00:22:14,359 --> 00:22:17,240 Speaker 1: of the e t F enter into broader products so 402 00:22:17,280 --> 00:22:19,960 Speaker 1: that it's like you just get a little hint of 403 00:22:20,200 --> 00:22:23,480 Speaker 1: marijuana somewhere in a larger product. Do you think that's 404 00:22:23,560 --> 00:22:27,600 Speaker 1: gonna happen? Of course, the if you own a big 405 00:22:27,680 --> 00:22:30,760 Speaker 1: mainstream et F like v t I, the total market. Um, 406 00:22:30,880 --> 00:22:33,040 Speaker 1: you know, you're gonna feel a little this. The problem 407 00:22:33,160 --> 00:22:36,840 Speaker 1: is the indec like a contact hie. Yeah yeah, you yeah, 408 00:22:36,880 --> 00:22:39,119 Speaker 1: you're like maybe ten yards away from the smoke. Because 409 00:22:40,080 --> 00:22:43,120 Speaker 1: the problem with these big indexes and these fledgling industries 410 00:22:43,160 --> 00:22:45,840 Speaker 1: like robotics or pot or any of these it takes 411 00:22:46,119 --> 00:22:48,520 Speaker 1: these indexes are very conservative with when they take a 412 00:22:48,560 --> 00:22:50,800 Speaker 1: stock in, it's got to have all kinds of requirements. 413 00:22:51,240 --> 00:22:54,160 Speaker 1: You miss a lot of the toddler growth spurts, and 414 00:22:54,240 --> 00:22:56,760 Speaker 1: again you also missed the vaultility and that's a payoff. 415 00:22:56,800 --> 00:22:58,760 Speaker 1: So I would say that, yeah, if you held just 416 00:22:58,840 --> 00:23:01,760 Speaker 1: regular stuff, you'll eventually fuel pot, but you will probably 417 00:23:01,760 --> 00:23:04,280 Speaker 1: have missed a lot of the um you know, teenage 418 00:23:04,359 --> 00:23:07,080 Speaker 1: years or toddler years of the growth of these companies 419 00:23:07,400 --> 00:23:15,600 Speaker 1: that you would can get in the specific ets. Okay, 420 00:23:15,640 --> 00:23:18,760 Speaker 1: So Canada has done this. The US obviously there are 421 00:23:18,800 --> 00:23:22,760 Speaker 1: different states from the Colorado's and California's and Oregons and 422 00:23:22,880 --> 00:23:27,320 Speaker 1: Washington's and now Missouri of all places like, so we've 423 00:23:27,320 --> 00:23:31,119 Speaker 1: seen this evolution. Obviously, there's federal laws that are different 424 00:23:31,160 --> 00:23:35,000 Speaker 1: than state laws. How do you see the investing landscape 425 00:23:35,080 --> 00:23:38,280 Speaker 1: changing in the US? That is the big question that 426 00:23:38,320 --> 00:23:41,320 Speaker 1: I think it's on everybody's mind in Canada. Canadians have 427 00:23:41,400 --> 00:23:43,919 Speaker 1: an advantage here, right they are first out of the gates, 428 00:23:44,119 --> 00:23:46,440 Speaker 1: But there's a certain level of skepticism or I guess 429 00:23:46,520 --> 00:23:49,800 Speaker 1: caution perhaps about what happens when the US does come online. 430 00:23:50,040 --> 00:23:51,560 Speaker 1: And one of the ways in which you know you've 431 00:23:51,560 --> 00:23:54,760 Speaker 1: seen sort of Canadian companies listing both in on the 432 00:23:54,800 --> 00:23:57,320 Speaker 1: Canadian Stock Exchange and on the US stock exchanges is 433 00:23:57,359 --> 00:24:00,440 Speaker 1: providing that they don't have businesses in the US. So 434 00:24:00,760 --> 00:24:03,280 Speaker 1: that means that when we do see legalization come through 435 00:24:03,440 --> 00:24:06,000 Speaker 1: in the US, that could put them at a disadvantage 436 00:24:06,000 --> 00:24:09,040 Speaker 1: and actually taking advantage of that. We currently have ten 437 00:24:09,080 --> 00:24:13,560 Speaker 1: states I believe that have fully recreational legalized cannabis, and 438 00:24:13,600 --> 00:24:16,159 Speaker 1: I think it's thirty two or thirty three where you 439 00:24:16,200 --> 00:24:19,639 Speaker 1: have medical marijuana legalized. That I believe it's about seventy 440 00:24:20,040 --> 00:24:22,840 Speaker 1: of the American population in a state where cannabis is 441 00:24:22,920 --> 00:24:25,720 Speaker 1: legal in some respect. That's huge, but you've got to 442 00:24:25,720 --> 00:24:28,480 Speaker 1: remember that from a federal perspective, it is still illegal. 443 00:24:28,760 --> 00:24:32,399 Speaker 1: And the Trump administration has definitely been against marijuana. You know, 444 00:24:32,440 --> 00:24:34,440 Speaker 1: you've seen that through number of speeches kind of coming 445 00:24:34,440 --> 00:24:36,520 Speaker 1: out from them over the last few months. So it 446 00:24:36,560 --> 00:24:40,600 Speaker 1: really depends on whether after mid terms we see shift 447 00:24:40,640 --> 00:24:42,640 Speaker 1: in tone and we start to see a move towards 448 00:24:42,680 --> 00:24:46,520 Speaker 1: for legalization, or we could see something coming through from Congress. 449 00:24:46,560 --> 00:24:49,320 Speaker 1: There's an act there that could pass called the Strengthening 450 00:24:49,320 --> 00:24:53,840 Speaker 1: the Tenth Amendment through Entrusting States Act, which that needs 451 00:24:53,840 --> 00:24:59,520 Speaker 1: a nickname. The nicknames states. Yeah, very clever, But that 452 00:24:59,640 --> 00:25:01,520 Speaker 1: is the US to give you know, sort of state 453 00:25:01,640 --> 00:25:06,359 Speaker 1: se confidence to have their own rules on cannabis and 454 00:25:06,400 --> 00:25:08,679 Speaker 1: not worry too much about the kind of federal illegality. 455 00:25:08,960 --> 00:25:10,800 Speaker 1: There's also little things like I think New York they 456 00:25:10,800 --> 00:25:13,480 Speaker 1: stopped arresting people right if you smoke it on the streets, 457 00:25:13,880 --> 00:25:15,840 Speaker 1: and I live in Philly, I'm telling you I smell 458 00:25:15,920 --> 00:25:18,879 Speaker 1: it way more people are just not as it's just 459 00:25:19,440 --> 00:25:21,600 Speaker 1: the cats out of the bag. It just I don't know, 460 00:25:21,640 --> 00:25:23,359 Speaker 1: I decided feels like it. We have a code for 461 00:25:23,400 --> 00:25:29,040 Speaker 1: that in my house, we say smells like Colorado. Rachel Evans, 462 00:25:29,080 --> 00:25:30,760 Speaker 1: thanks for joining us in trillion, Thanks for having me, 463 00:25:35,280 --> 00:25:37,600 Speaker 1: Thanks for listening to trillions. Until next time. You can 464 00:25:37,600 --> 00:25:42,320 Speaker 1: find us in the Bloomberg Terminal, Bloomberg dot Com, Apple Podcast, Spotify, 465 00:25:42,440 --> 00:25:44,520 Speaker 1: and wherever else you like to listen, we'd love to 466 00:25:44,560 --> 00:25:47,840 Speaker 1: hear from you. We're on Twitter, I'm at Joel Wepper Show, 467 00:25:48,200 --> 00:25:51,360 Speaker 1: He's at Eric Baltunist and you can find Rachel at 468 00:25:51,520 --> 00:25:56,360 Speaker 1: Rachel Evans Underscore and Why Trillions is produced by Magnus Hendrickson. 469 00:25:56,840 --> 00:26:00,280 Speaker 1: Francesca Levy is the head of the Bloomberg podcast five