Risks Prospective Psychedelic Investors Need to Co
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Posted On: 04/27/2022 5:23:41 PM
Risks Prospective Psychedelic Investors Need to Consider
Various studies have found that psychedelic treatments have the potential to treat mental health conditions such as anxiety and depression, among others. This, coupled with the ineffectiveness of current treatments, has made investing in psychedelics appear even more lucrative.
However, before rushing to invest in this burgeoning industry, there are a couple of things that one should consider before purchasing psychedelic stocks. We discuss them below.
Competitiveness of the market
This may be the biggest risk to investors of psychedelic stocks. Currently, more than 50 publicly trading firms are working with psychedelics, including DMT, LSD, MDMA and psilocybin. While there is hope that some psychedelics will soon be legalized in the short term, it is important to remember that not every company will make it in the market. This means that choosing a company years in advance that one believes will win this race will require a lot of risk taking.
Effectiveness of these medicines
Many theorize that psychedelic drugs such as MDMA and psilocybin will be significantly effective in the treatment of various conditions, and that once they are approved by the FDA, they can be easily sold with significant profits being made. However, even as more data is released, there’s still a risk that these drugs may not be as effective as some may have hoped.
Currently, only one phase III clinical trial on the use of MDMA in the treatment of post-traumatic stress disorder has been concluded. Despite the trial’s promising results, more and possibly larger clinical trials are needed to test the use of psychedelics as medicines for us to be certain of their safety and effectiveness.
Profitability
Before investing in certain stocks for the long term, one needs to look into whether the company in question will become profitable. For investments to be successful, companies need to become profitable. If these organizations don’t make money at the end of the day, neither will their investors.
Currently, no major psychedelic drug firm is profitable. In fact, the majority don’t even generate revenues. While this doesn’t mean that the companies won’t become profitable in the future, there is also no guarantee that they will.
Most companies participating in this particular market also have no operating history older than a couple of years, which means that they possess no track record of their ability to produce profits and revenues.
Additionally, many companies behind psychedelic stocks are currently focused on raising funds to finance their trials and studies. This will prompt them to dilute themselves as well as, in the future, raise the bar on how well they have to perform for investors to recover their investments in the future.
Before you invest in psychedelics, you should take steps to mitigate your risks and do your own research. Remember to always be responsible with your money when investing in any sector.
The risks above notwithstanding, savvy investors have a large pool of potential possibilities in which to invest, including Delic Holdings Corp. (CSE: DELC) (OTCQB: DELCF). They need to ensure that they perform their due diligence preceding any investment activity.
NOTE TO INVESTORS: The latest news and updates relating to Delic Holdings Corp. (CSE: DELC) (OTCQB: DELCF) are available in the company’s newsroom at https://ibn.fm/DELCF
Please see full terms of use and disclaimers on the PsychedelicNewsWire website applicable to all content provided by PNW, wherever published or re-published: https://www.PsychedelicNewsWire.com/Disclaimer
Various studies have found that psychedelic treatments have the potential to treat mental health conditions such as anxiety and depression, among others. This, coupled with the ineffectiveness of current treatments, has made investing in psychedelics appear even more lucrative.
However, before rushing to invest in this burgeoning industry, there are a couple of things that one should consider before purchasing psychedelic stocks. We discuss them below.
Competitiveness of the market
This may be the biggest risk to investors of psychedelic stocks. Currently, more than 50 publicly trading firms are working with psychedelics, including DMT, LSD, MDMA and psilocybin. While there is hope that some psychedelics will soon be legalized in the short term, it is important to remember that not every company will make it in the market. This means that choosing a company years in advance that one believes will win this race will require a lot of risk taking.
Effectiveness of these medicines
Many theorize that psychedelic drugs such as MDMA and psilocybin will be significantly effective in the treatment of various conditions, and that once they are approved by the FDA, they can be easily sold with significant profits being made. However, even as more data is released, there’s still a risk that these drugs may not be as effective as some may have hoped.
Currently, only one phase III clinical trial on the use of MDMA in the treatment of post-traumatic stress disorder has been concluded. Despite the trial’s promising results, more and possibly larger clinical trials are needed to test the use of psychedelics as medicines for us to be certain of their safety and effectiveness.
Profitability
Before investing in certain stocks for the long term, one needs to look into whether the company in question will become profitable. For investments to be successful, companies need to become profitable. If these organizations don’t make money at the end of the day, neither will their investors.
Currently, no major psychedelic drug firm is profitable. In fact, the majority don’t even generate revenues. While this doesn’t mean that the companies won’t become profitable in the future, there is also no guarantee that they will.
Most companies participating in this particular market also have no operating history older than a couple of years, which means that they possess no track record of their ability to produce profits and revenues.
Additionally, many companies behind psychedelic stocks are currently focused on raising funds to finance their trials and studies. This will prompt them to dilute themselves as well as, in the future, raise the bar on how well they have to perform for investors to recover their investments in the future.
Before you invest in psychedelics, you should take steps to mitigate your risks and do your own research. Remember to always be responsible with your money when investing in any sector.
The risks above notwithstanding, savvy investors have a large pool of potential possibilities in which to invest, including Delic Holdings Corp. (CSE: DELC) (OTCQB: DELCF). They need to ensure that they perform their due diligence preceding any investment activity.
NOTE TO INVESTORS: The latest news and updates relating to Delic Holdings Corp. (CSE: DELC) (OTCQB: DELCF) are available in the company’s newsroom at https://ibn.fm/DELCF
Please see full terms of use and disclaimers on the PsychedelicNewsWire website applicable to all content provided by PNW, wherever published or re-published: https://www.PsychedelicNewsWire.com/Disclaimer
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