If you’ve been following along this year, then you know I’ve been giving readers glimpses of my annual report of investment predictions over at Capital Wealth Letter.

I do this for a few reasons. For one, these predictions are fun — in fact, they’re one of the most sought after pieces of research we put out each and every year. It also happens to be some of the most profitable…

To recap, I gave a summary of my predictions in this article. Then, I shared our bold prediction about the U.S. dollar, the details of a potential cancer vaccine, and then my controversial take on the marijuana business.

Remember, a few of these predictions are bound to ruffle some feathers. But my job is to present you with opportunities — not to make a moral judgment. That’s up to you.

So with that in mind, I’ve got another spicy one for you…

Magic Mushrooms: The Next Frontier In Medicine?

As anxiety, loneliness and depression surged in the Covid-19 pandemic, one unexpected beneficiary was a fledgling new drug industry capitalizing on the remarkable properties of psilocybin. This naturally occurring compound found in “magic mushrooms” can treat depression, cure addiction, and help all manners of mental ailments.

When psilocybin is consumed, it creates a feeling of euphoria… along with a distorted sense of time, spiritual experiences, and visual hallucinations.

But there is much more to it than just getting “high”.

Superb results are coming in from test patients who have chronic depression caused by traumatic events. Big Pharma is plowing major resources into researching psychedelics. We predict they will pull these drugs into the pharmaceutical mainstream by the end of the decade.

Marijuana companies are also jumping on the bandwagon, researching LSD, psilocybin mushrooms, and other psychedelic substances. This trend will only gather steam as restrictions against psychedelics continue to be lifted.

How You Can Profit

How can investors profit from this trend? Well, let’s be clear about something first.

This is still very much in its infancy. But there are some publicly-traded companies involved. We’ve compiled a short list of companies to consider in this year’s report. I can’t reveal their names here, but I can tell you a little bit about them…

The first is a development-stage biotech company using psilocybin to treat depression. It was the first “psychedelic” stock to be listed on a stock exchange. It has raised $80 million from investors – including big hitters like PayPal founder Peter Thiel – for its new antidepressant based on magic mushrooms.

The FDA has awarded it with a Breakthrough Therapy designation, which speeds up the approval process for drugs that offer a “substantial improvement” over available therapies. It is currently in phase 2b clinical trial in 22 sites across Europe and North America.

Another one we like is a company focusing on LSD to treat addiction and attention deficit hyperactivity disorder (ADHD). The project has passed the initial safety testing and is in phase 2a of the three-stop FDA process. A separate hallucinogenic therapy for anxiety is in the same clinical trial stage.

If everything goes to plan, the company could steal a sizeable portion of the multi-billion-dollar global market for anxiety, depression, and ADHD drugs.

The third company to keep an eye on is a drug developer that works with psychedelics like psilocybin, LSD, MDMA, and ketamine. The company actually has a significant stake in one of the previous companies I just mentioned.

Closing Thoughts

Again, this “magic mushroom” industry is still in its infancy. Think of it like the early stages of the marijuana market.

For example, the top 10 psychedelic companies have a combined market cap of just $3.5 billion. The market cap for the top 10 cannabis companies is roughly $48 billion. That’s just the beginning of the potential runway (and profits) that this burgeoning new industry could see over the coming years.

Make no mistake, though. There will be winners and losers as this plays out. So I wouldn’t bet the farm on any one pick. But in this year’s report, I offer a handful of picks for investors to profit. If you’d like to learn more and get access to these picks (and more), go here now.