What they're not telling you: Donald Trump just did something that would have sounded borderline impossible a couple of years ago: he signed an executive order aimed at accelerating research and access to psychedelic therapies, backing it with $50 million in federal funding and directing regulators to remove barriers that have long kept this entire category stuck on the sidelines. This has been a key prediction in my thesis for psychedelic stocks that I’ve laid out over time. First, in January 2025, calling the psychedelic names “stocks to watch” for the year.
# THE TAKE: Trump's Psychedelic Play Is Pure Realpolitik Theater Trump didn't legalize psilocybin out of enlightenment—he legalized it because the pharma-biotech axis needed regulatory cover, and he needed a "radical" win that costs Washington nothing. Here's what the cheerleaders miss: psychedelic stocks are a speculative casino masquerading as medicine. Clinical trials remain murky. FDA approval timelines stretch years. Yet the moment a Republican president touches the third rail, NASDAQ rockets and venture capital pretends this is science policy instead of market manipulation. The real play? Big Pharma gets patentable analogues. Wall Street gets fresh extraction drama. Users get hoped-for therapy. Nobody addresses why mental health infrastructure remains gutted—that would require *actual* spending. This is neoliberal genius: rebrand decriminalization as populism, flood retail investors into vapor, and declare yourself the visionary president. Mainstream doesn't mean legitimate. It means profitable.
What the Documents Show
Then, in July 2025, urging patience in these positions: Being Early—And Patient—In Psychedelics Then again naming psychedelic names to my “stocks to watch” for 2026 and even going so far as to name the sector my “best idea” for 2026: My "Best Idea" Sector For 2026 Today I’ll discuss what, for me, remains the most prudent way to get and keep long-term exposure to the sector, and where I think things go after this morning’s rally. Trump’s administration framed the move as part of a broader attempt to confront the mental health crisis, particularly among veterans, while signaling that agencies like the FDA should dramatically speed up review timelines for promising treatments. The focus, at least initially, includes ibogaine, a compound with a controversial safety profile but growing interest for its potential in treating addiction and trauma. Alongside him were figures like Robert F. and Joe Rogan, both of whom have been outspoken advocates for these therapies, underscoring how quickly this conversation has moved from the fringe into the mainstream.
Follow the Money
There are still real concerns from scientists about safety, trial rigor, and whether the process could move too fast, but the direction is unmistakable: the federal government is no longer ignoring psychedelics, it is actively engaging with them. And if you have been reading me for the last year, none of this should feel surprising. At the beginning of 2025, I laid out what I thought was coming: a convergence between science, sentiment, and politics that could finally legitimize an industry that had been written off for decades. I was not pretending the timing would be perfect or that the stocks would go straight up, in fact, I explicitly said the opposite. These were always going to be volatile, early stage, cash burning companies operating in one of the most regulation sensitive industries on the planet. What mattered was not the quarter to quarter performance.
What Else We Know
What mattered was whether the world would eventually start taking this category seriously. That was the first part of the bet. The next is clinical data. And along the way, the market did exactly what it tends to do with misunderstood themes. It tested conviction. The ETF held up relatively well, individual names stumbled, sentiment wavered, and most investors moved on, filing the entire space under maybe someday or probably never.
Primary Sources
- Source: ZeroHedge
- Category: Global Power
- Cross-reference independently — don't take our word for it.
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