In June of 2016, Marijuana stocks were barely on the radar for most investors.

There were already a handful of states that already recreationally legalized marijuana, but when it came to the entire industry, there was a lot of apprehension.

Its hard to put your head in the mindset of an investor in 2016, but lets lay out the picture

Only four states at this point had recreational legalized marijuana, and it was unclear whether more would legalize in November of that year.

On top of that, there were fears that the federal government would seize the assets of the cannabis companies.

Today, this fear has mostly been alleviated, as theres a bill in Congress which could promise sweeping banking reform.

CBD and hemp derivatives were still mostly illegal and would be for another two years.

And on top of all of this, Canada to the north also wouldnt legalize recreational marijuana for another two years.

It was a huge gamble to get into names in the industry.

The 2016 election came and went.

And with it California, Nevada, Maine and Massachusetts all legalized recreational marijuana.

The states before this were small pickings compared with the massive influx of people that now had access to recreational cannabis in their state think Boston, Las Vegas and the whole of California.

2017 then became the year of cannabis for the stock market.

Names like Aphria Inc. (NASDAQ: APHA) once penny stocks shot up 2,000%, as shown in the chart below

And all of this was because of the euphoria surrounding pot stocks.

The potential in these names was huge if federal legalization was on the horizon.

So investors bought up these names in anticipation for these companies making bank later on.

If you had gotten in when we were talking about pot stocks well before the 2016 election, you could have made a killing off of names like Aphria or Canopy Growth Corp. (NASDAQ: CGC).

Im saying this now because I believe Ive uncovered the next stock craze that will hit the markets

Its following a very similar trajectory to what pot stocks were taking, and we could see huge payouts from the euphoria over these stocks.

The Next Pot in 2016 Moment

If you havent guessed it already, Im talking about psychedelics specifically those related to the psilocybin mushroom.

Digging deeper and youll find that the psychedelic story echoes that of cannabis pre-2016.

For cannabis researchers find medical benefits to the drug and then states step in to enact laws surrounding its usage.

Psychedelics are following the exact same path thus far.

Researchers in the past couple years have hit several breakthroughs that have shown psilocybin to have positive effects on peoples mental health.

Studies in the past couple years have shown that psilocybin was able to help reset a persons mind who was experiencing depression. And further studies have linked the psychedelic drug to reduced anxiety and lower compulsion to pursue addictions.

Because of this, states and cities across the country have decriminalized the recreational use of the drug. And Oregon is the first state to legalize it for medical use.

The count, though, is few, as only cities including Denver, Oakland and Washington, D.C., have decriminalized psychedelics.

This can only mean good things for you, though

Because that means theres HUGE potential for this to take off in the coming election cycles.

As more and more research is conducted

And more states begin to legalize its usage

Psychedelic stocks will only benefit.

So the question is now: How do you invest in shroom stocks?

There are a lot of smaller companies out there that have a lot of potential (Im deeply researching a few right now for our premium services).

But if you want to get in on the action without getting burned on one company, theres a way right now to do it through the Horizons Psychedelic Stock Index ETF (NEO: PSYK).

This ETF holds a basket of stocks with huge potential for growth.

However, if you dont have the means to be able to invest with Canadian exchanges, you can still look at the holdings and mimic what they have there.

The only difference is that youll need to manage the portfolio allocation yourself.

You can find their holdings here under the Holdings tab.

Im always on the hunt for the best opportunities out there.

And psychedelics arent the only thing on my radar

The EV sector has a huge amount of potential as more and more automotive companies commit to going fully electric in the next decade.

EVs need batteries. And one $2 stock Ive targeted has huge potential to land a major partnership with a huge company based on its technology.

Click here now to see what Im talking about.

To a bright future,

Ray Blanco