During periods of economic distress and global insecurity, vice industries—like alcohol, tobacco, and now marijuana—have shown remarkable resilience. As the world continue to grapple with ongoing challenges, marijuana stands out as a solid investment in these turbulent times.

Vice Industries and Economic Resilience
Historically, vice products have performed well during economic downturns. For example, during the 2008 financial crisis, the alcohol industry saw a 9% revenue increase, demonstrating the “lipstick effect,” where consumers continue to spend on small indulgences. Similarly, legal cannabis sales in the U.S. grew by 46% in 2020, even amidst the COVID-19 pandemic. This growth underscores the industry’s strength, even when general consumer confidence is low.  It may be a sad truth that these products bring some comfort as we responsibly seek ways to cope with personal and collective issues and problems.

Marijuana’s Growth Amidst Global Crises
The global legal marijuana market is projected to reach $97.35 billion by 2026, solidifying marijuana’s place as a staple of the vice economy. During the COVID-19 pandemic, many U.S. dispensaries remained open as essential businesses, resulting in a 30% sales increase in 2020 compared to the previous year. With more than 50 million regular users in the U.S., marijuana has become a significant part of consumer spending, especially in uncertain times.

Goldstalk: A Leader in Cannabis Investment
Goldstalk, a Los Angeles-based company since 2012, exemplifies success in the marijuana industry during challenging periods. Over the past fourteen years, the company has seen:

1. 25% Year-over-Year Growth: Reflecting increased product demand during crises.

2. 18% Average ROI: Securing high-profile investments despite market volatility.

3. 92% Customer Retention: Outperforming industry benchmarks, even in tough times.

Goldstalk’s expertise is demonstrated through its handling of sophisticated financial transactions, such as senior secured corporate debt yielding 15% annually, and real estate trust deeds yielding between 12% and 15%. These transactions not only highlight Goldstalk’s strategic acumen but also underscore its ability to deliver attractive returns, even in uncertain market conditions.

For wealth managers & advisors, real estate brokers, lawyers, and accountants who have clients interested in cannabis as a direct investment into cannabis operations, partnering with Goldstalk can provide your clients with access to many different types of opportunities from real estate, to factoring, to equipment financing to branding, using either debt or equity…

A Strategic Investment Opportunity
In today’s uncertain global landscape—conflicts in the Middle East and Europe, change of power in South America (Venezuela) and general discord among nations--the cannabis industry offers a unique investment opportunity based on global demand. With a projected CAGR of 23.9% from 2021 to 2028, marijuana is set to continue its upward trajectory. For professionals advising clients, understanding the cannabis market’s nuances is crucial. Goldstalk’s expertise ensures that clients are well-positioned to capitalize on this emerging, resilient sector that is outside the pubco-equity trading sector…  Our underwriting and capital deployment committees prefers direct investments in brick and mortar operations with personal guarantees and collateral.

Conclusion
We believe that marijuana’s consistent inelastic demand underscores its potential as a resilient investment—a vice investment. For those seeking to invest wisely during turbulent times, marijuana, backed by Goldstalk’s expertise, is worth considering.  It is also very important for our followers to understand our core belief that responsible use of ALL vice products must drive our actions and that reliance on any products to feel better—including recreational cannabis—needs to be evaluated for its true efficacious effects and not used as a form of self-medicating.

Michael Waldman
Managing Partner
Goldstalk, LLC
(310) 400-5599