![]() While it may not be the fastest growth opportunity, cybersecurity is probably the safest double-digit growth trend this decade. This allows pot companies to bolster their balance sheets with cash while giving IIP a long-term tenant. To solve this, IIP acquires facilities for cash and immediately leases the asset back to the seller. Since marijuana is illicit in the U.S., not all banks are willing to offer pot stocks basic banking services. The company is also thriving because of its sale-leaseback program. It's going to take far less than 16.8 years for Innovative Industrial Properties to receive a complete payback on its invested capital. All 72 of these properties are leased out, with a weighted-average lease length of 16.8 years. As of the end of May, IIP owned 72 properties spanning 6.6 million square feet (in aggregate) in 18 states. In layman's terms, IIP, as the company is known, buys marijuana cultivation and processing facilities with the goal of leasing these assets out for very long periods of time (10 to 20 years). When the next stock market crash occurs, consider investing some of your $10,000 into cannabis-focused real estate investment trust ( REIT) Innovative Industrial Properties ( IIPR -1.38%). You know what acts like a consumer-packaged good during periods of recession and panic? Cannabis. With figures like these, it's no wonder advertisers are clamoring for placement on the platform and paying sequentially higher prices to do so. That's 3.45 billion people, or 44% of the world's population, visiting at least one of its owned assets each month. When the next steep decline occurs, it would make for a genius addition to your portfolio.Īs of the end of March, Facebook's namesake site brought in 2.85 billion people on a monthly basis, with another 600 million unique visitors from WhatsApp and Instagram, which it also owns. FacebookĮven though advertising-driven companies typically struggle during periods of panic selling, social-media giant Facebook ( META 1.78%) has proved time and again to be the exception. If you've got $10,000 at the ready that won't be needed to cover emergencies or pay bills, that's more-than-enough capital to put to work in these winning stocks when the next crash strikes. On the contrary, every crash or steep correction in history has proved to be an outstanding buying opportunity for long-term investors. However, just because a stock market crash is inevitable doesn't mean you have to cower in fear or pull your money out of the market. ![]() Here's where to invest $10,000 when the next stock market crash occurs We're now more than 14 months removed from the March 2020 bottom and have yet to see a double-digit percentage retracement in the benchmark S&P 500. At no point over the past 60 years has there been a bear market that didn't correct between 10% and 19.9% at least once within three years of hitting a bottom. History also sheds light on how the markets typically respond following a bear market bottom. Precedent suggests that premium valuations like we're seeing now aren't well-tolerated for long periods of time. The concern is that in the previous four instances where the S&P 500's Shiller P/E ratio topped and sustained 30, the index went on to lose at least 20% not long thereafter. For reference, that's more than double the average S&P 500 Shiller P/E dating back to 1870. ![]() The S&P 500's ( ^GSPC 0.22%) Shiller price-to-earnings (P/E) ratio - a measure of inflation-adjusted earnings over the previous 10 years - closed this past week at 37.28. One of the biggest red flags can be seen on the valuation front.
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