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Events south of the border are helping Canada lean into the turns on this run for the gold. Trump’s choice of Jeff Sessions for attorney general, for example, threatens to paralyze the U.S. market’s progress toward a federally legitimized marijuana framework, and that works very much in Canada’s favour. Sessions is notoriously anti-legalization of marijuana for medical or recreational purposes. That means global investors who want to get on the bandwagon are going to prefer Canada.

Canopy Growth’s recent foray into Germany points to another advantage of Canada’s fleet footedness in the marijuana space. Germany finds itself in a position where it prefers to permit the import of marijuana, rather than navigate the quagmire of establishing a domestic production industry — at least, initially. But no matter. Canopy is first and will give any German start-up a very tough go indeed.

All in all, there are fortunes being made, and there is still much more to come. Valuations will rise and fall, and at times, they will seem unsupportable. But the capital pouring in and the valuations ratcheting higher are obvious harbingers of the fledging of an eagle, moreso than the blowing of a bubble.

James West is an investor and the author of the Midas Letter, an investing research report focused on Canadian markets. The views expressed are his own and are presented for general informational purposes only. They should not be construed as advice to invest in any securities mentioned.

James West and/or associated funds do not own shares in any securities mentioned in this article. For the full Midas Letter disclosure policy, click here. Postmedia and Midas Letter have a revenue sharing arrangement.