“Wine in, truth out.”
— Charles Dickens, Nicholas Nickleby
Dear Rick,
There was very little in the way of interesting news as September drew to an end. Maybe everyone is just taking a breather — anticipating trouble ahead?
We also had two very different guests this week. Doug Drysdale explained how “magic mushrooms” could lead to breakthrough — potentially fortune-making — treatments for addiction and depression. Then Will Bonner and Diego Samper shared details on exquisite wines you can’t find anywhere else.
If nothing else, we hope these Sessions provided you with some comfort if you’re getting collywobbles thinking about all the ways the markets could go wrong.
Here’s everything we discussed…
In one of the misbegotten episodes of my youth, I hopped in a VW bus and “toured” with the Grateful Dead. Yeah, it sounds like a cliche, but it turned out to be a great way to see the country. I also maintain that the journey taught me more about the free market than any reading or writing I’ve ever done. One popular item you could bank on for enough gas money to reach the next town was psilocybin, or “magic mushrooms.” I’ll plead the Fifth on some of the more intricate details. But it turns out that the chemical in magic mushrooms that causes the psychedelic “trip” might actually be able to open your mind to new ideas… making it helpful in treating mental conditions like depression and addiction.
Psychedelic Drug Companies vs. Pot Stocks
While the cannabis markets are worth $20 to $30 billion, “the markets for psychedelics are vastly larger.” Remember, Cybin isn’t pushing psilocybin for recreational use. It’s specifically interested in using the chemical as a treatment for mental illnesses such as depression and addiction. Doug estimates that “the total addressable market is something like $300 billion annually.” Needless to say, that kind of profit potential has persuaded more companies to start looking at psychedelic drugs.
If the constant sorties of the culture wars aren’t enough to cause acute mental distress… at the very least they may drive you to drink. For maximum therapeutic effect, choose an alcohol-delivery vehicle with plenty of zest. With so many options to choose from, where do you start? My guests for the remainder of this week’s Session can help. I talked to Will Bonner and Diego Samper of the Bonner Private Wine Partnership. We kick things off with a bit of history and terroir… giving you a good sense of where Will and Diego are coming from.
This week Congress voted on a continuing resolution — legislation that authorizes the government to keep spending money. But this truce between Democrats and Republicans doesn’t address where that money will come from. Thanks to the country’s huge budget deficit, Uncle Sam spends more than it brings in. So the government needs to borrow money to pay its bills. And the debt ceiling sets the maximum amount of cash the U.S. can take out on loan. The country is on pace to hit that limit in October, unless Congress acts. As we’ve mentioned before, first we’ll need to go through the political theater, where one party insists the other is being irresponsible.
The tenth month has gained a reputation for being particularly volatile on Wall Street. Some investors even call it the “Mark Twain Effect.” The Panic of 1907 happened in October. Black Monday was Oct. 19, 1987. Then there was the “mini-crash” on Oct. 27, 1997. The bear market of the Great Recession started on Oct. 11, 2007. Will this October add a new date to that infamous list? The dips we saw in September certainly feel like the preamble for bigger slides in the weeks ahead. It seems even more likely when we consider the many unresolved problems facing the markets — Evergrande… the debt ceiling… the Federal Reserve’s taper.
You can catch our full interview with Doug Drysdale, right here.
You can catch our full interview with Will Bonner and Diego Samper, right here.
To hear my entire talk with Doug Drysdale about Cybin Inc. (CYBN), click on our photo above.
Then learn what makes Argentinian wine so special — and how to add rare bottles to your collection — by clicking the photo of me, Will and Diego.
Regards,
Addison Wiggin
Founder, The Financial Reserve
P.S. One major cause for concern heading into the fourth quarter is China. There are signs its massive economy is slowing down… and the problems at Evergrande may just be the start of a much bigger crisis.
With so much at stake, I sought out David P. Goldman, a columnist for Asia Times and author of You Will Be Assimilated: China’s Plan to Sin-form the World. He shares his unique perspective on the Middle Kingdom… and why what happens there will affect you.
Look for that interview starting next week.
