As another year wraps up in the psychedelic investment market, INN spoke with an expert to break down the takeaways for investors to look at.
James Halifax: Psychedelics Showing Strong Signs Despite Stock Losses youtu.be
After bursting into the market in 2020, psychedelic investments had a critical year of progress in 2021.
The Investing News Network (INN) spoke with James Halifax, host of the popular YouTube channel the Psychedelic Investor, about takeaways for the year and what may be on the horizon for the industry.
While the psychedelics space holds a tremendous amount of possibility thanks to the potential for medically approved psychedelic compounds to be used as novel treatments, 2021 proved to be a difficult period in the stock market. However, Halifax said that doesn’t tell the whole story.
“If you’re just zooming out and taking a look at the stock price, not taking in any more information, you would come along or come away with the perspective that, ‘Oh golly, it’s been an absolutely horrible year or six months for psychedelic stocks,” he explained in conversation with INN.
As of December 15, the Horizons Psychedelic Stock Index ETF (NEO:PSYK) was down 2.64 percent in value year-to-date. At the closing bell on Monday (December 17), the fund was priced at C$5 per share.
Even in the face of these losses, Halifax is encouraged by what was accomplished throughout 2021 when it comes to medical research, saying that it represents “bullish signs” for the market as a whole.
“Lots of these companies have been making really good headway into their development of these psychedelic medicines,” he said. The expert added that he expects to continue seeing other smaller psychedelic studies come out, with continued interest shown in the medical approach to the market. His YouTube channel dives deep into the latest trends in the psychedelics world, including interviews with medical experts in the space.
Of course, complicated drug development programs aren’t the only section of the market, and Halifax told INN he’s been growing more interested in other parts of industry.
These divisions include companies focused on operating psychedelics clinics, as well as firms with aspirations in the retreat market and entities exploring what limited adult-use options there are for psychedelics.
Halifax highlighted clinic companies as operations that may be generating revenue, along with the potential to scale up, even though they are still not profitable.
“Looking at the long-term potential, I still think that it’s mostly in the pharmaceutical companies,” the expert noted. He believes it's likely that these companies will be able to see returns on a substantial scale.
Watch the full interview above to listen to Halifax's perspective on what to know when investing in the psychedelics market. You can also click here to watch the rest of INN's YouTube videos.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.