If you read yesterday’s RiskHedge Report, you know psychedelics stocks—which my colleague Chris Wood calls The Next Pot Stocks—are one of the biggest “ground floor” opportunities in the market today.

Chris says investors who place their bets on the right psychedelic stocks now can set themselves up for massive gains in the years ahead. But it’s still a wildly misunderstood industry. So today, I’m bringing in Chris to share more details about this exciting opportunity…

Stephen McBride: Chris, I loved the writeup you published yesterday. You’ve found a new investing opportunity in the psychedelics space, and I’d like our readers to hear about it. 

Chris Wood: It’s a brilliant opportunity. As you probably know, one of the best ways to make outsized returns is to invest in new sectors. I think psychedelics is the next promising one to invest in.

Stephen: Based off of what I’ve read from your work, it sure seems so. But let’s start at the beginning. What are psychedelics?

Chris Wood: Well, human beings have been using psychedelics for thousands of years. Some historians think humans used “magic mushrooms” as far back as 9000 BC.

But for the past several decades, the US government has classified psychedelics as Schedule I drugs. That’s the most severe category. According to the government, these drugs have “no currently accepted medical use and a high potential for abuse.”

Stephen: Isn’t cannabis a Schedule I drug too?

Chris: Yes, while cocaine, methamphetamine, and fentanyl are Schedule II.

It’s ridiculous, because psychedelics could help millions of people and solve a multitrillion-dollar problem in the process.

Stephen: That’s a bold claim. What multitrillion-dollar problem are you talking about?

Chris: I’m talking about the mental health crisis. According to Our World in Data, 970 million people worldwide suffer from a mental health or substance abuse disorder. That’s 12.4% of all folks on Earth.

The worst part is today’s treatments for these conditions are failing. Many patients don’t respond to commonly used therapies. And those that do often experience terrible side effects. 

Stephen: Do you believe the use of psychedelics will make a difference?

Chris: I do, and I’m not alone. Organizations like the Multidisciplinary Association for Psychedelic Studies (MAPS) also share this vision.

MAPS has been funding clinical trials of psychedelics for two decades. In May 2021, MAPS announced the results of a large-scale clinical trial. It found that MDMA (ecstasy) is an effective treatment for severe post-traumatic stress disorder (PTSD).

67% of the patients treated with MDMA no longer qualified for a PTSD diagnosis. And 88% experienced a meaningful reduction in symptoms.

Stephen: Wow. Two-thirds of the patients were effectively cured?

Chris: Yeah, and the most stunning part is the patients were once considered untreatable!

Dozens of clinical trials around the world show that psychedelics have helped in treating depression, anxiety, PTSD, and addiction.

The trials have also shown psychedelics treat these conditions more effectively than pharmaceutical drugs.

Stephen: Positive trials are surely a good sign. But earlier you mentioned that psychedelics are considered Schedule I drugs. How does regulation factor into all of this?

Chris: Well, regulators are finally coming around. They’ve realized they can no longer ignore the potential psychedelics have in treating mental health and substance abuse disorders.

The FDA has already given the “Breakthrough Therapy” label to four psychedelic-based drugs. The Breakthrough Therapy label is designed to speed up the development and review of drugs.

And while psychedelics remain classified as Schedule I drugs, cities and states around the United States are decriminalizing their use. Denver, Colorado became the first US city to decriminalize psilocybin in 2019.

Oakland and Santa Cruz, California soon followed suit. They also decriminalized several other psychedelics too. Today, there are dozens of efforts to legalize psychedelics throughout the US.

Stephen: This all reminds me of the journey that cannabis initially went through. At first, a few rogue cities legalized it. That eventually led to a tidal wave of legalization.

Chris: Pot paved the road for psychedelics. And although cannabis remains a Schedule I drug, it’s now fully legal in 15 states and Washington, DC. Another 22 states have legalized it for medical use. That’s 37 states plus DC where folks can legally use cannabis.

The same thing will happen with psychedelics. But it will happen even faster, because cannabis legalization laid out a roadmap.

And remember how pot stocks shot off like a rocket during cannabis’ legalization?

Stephen: Yeah, I remember Aurora Cannabis (ACB) shot up nearly 4,000% in just two and a half years. And Canopy Growth Corp. (CGC) jumped nearly as much in three years.

Chris: The same thing will happen with psychedelics stocks.

Stephen: So betting on psychedelics now could be like betting on pot stocks before they went sky-high?

Chris: Definitely. Like I mentioned earlier, we’re seeing more scientific evidence every day showing that psychedelic therapeutics can treat all sorts of mental health issues and substance abuse disorders. We’re also seeing regulators and legislators coming around.

Put it all together and what you’ve got is the rare chance to get in on the ground floor of an investment craze that will be worth trillions of dollars in the years ahead.

And I’ve found the perfect little stock to play it.

It’s an off-the-radar psychedelic drug developer that’s using technology to make these miracle medicines even better. My research shows that by getting in today, we can set ourselves up for 8X potential gains.

Stephen, if readers are looking to capitalize on this new opportunity, I just published the name and ticker of this tiny stock in yesterday’s issue of Project 5X, my advisory focused on finding explosive microcaps with 5X or more potential. They can sign up to get this pick right now, by going to this special link. This link also entitles them to a 38% discount, simply because this opportunity is too big to ignore.

Stephen: Got it. Thanks, Chris. We’ll talk soon.

And readers, if you’re interested in accessing Chris’s #1 psychedelics stock, act soon…

This link, which includes your 38% discount, is invalid after midnight tonight.

​Stephen McBride
Editor — Disruption Investor