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Psychedelics — once largely confined to the fringes of medicine and culture — are now drawing attention at the highest levels of government.
On Saturday, President Donald Trump signed an executive order aimed at accelerating research and regulatory review for psychedelic-based treatments, particularly for conditions like PTSD and depression.
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Standing behind him was podcaster Joe Rogan, a longtime advocate for exploring the therapeutic potential of these substances.
During the announcement, Rogan described a text exchange he had with Trump after sharing information about ibogaine and its potential role in treating addiction.
“I sent [Trump] that information,” Rogan said (1). “The text message [from Trump] came back: ‘Sounds great. Do you want FDA approval? Let’s do it.’ It was literally that quick.”
“Today’s order will ensure that people suffering from debilitating symptoms might finally have a chance to reclaim their lives and lead a happier life,” Trump said as he signed the directive.
The president also made a lighthearted remark about trying ibogaine himself, referencing research suggesting the psychoactive compound could significantly reduce symptoms of depression and anxiety within a month.
“Can I have some, please? I’ll take some,” he said, drawing laughter from the room. “I’ll take whatever it takes. I don’t have time to be depressed. You know, you stay busy enough, maybe that works too. That’s what I do.”
The move marks a notable shift in Washington’s stance on psychedelics — and it didn’t take long for markets to respond.
By Monday, shares of several companies developing psychedelic treatments had surged, with analysts pointing to further upside.
Here’s a look at three notable names.
One of the biggest winners on Monday was Compass Pathways (NASDAQ:CMPS), a biotechnology company focused on developing psychedelic therapies for mental health conditions.
Its lead candidate, COMP360 — a synthetic form of psilocybin — is being studied as a treatment for patients with treatment-resistant depression. The therapy has already received “Breakthrough Therapy” designation from the FDA, a status designed to speed up the development of promising treatments.
In a press release commending the Trump administration’s executive order, Compass Pathways CEO Kabir Nath said, “We are already actively working with the FDA on a rolling submission and review for COMP360 in TRD and look forward to continuing our efforts to bring this potential transformative treatment to the millions of Americans in need (2).”
Shares of Compass Pathways jumped 42% on Monday and BTIG analyst Thomas Shrader sees more upside on the horizon. Shrader reiterated a “Buy” rating on CMPS stock on Monday with a $14 price target, implying a potential upside of 48% (3).
Another closely watched name is AtaiBeckley (NASDAQ:ATAI), a clinical-stage biotech focused on developing psychedelic-based treatments for mental health disorders.
The company has built a broad pipeline targeting conditions such as treatment-resistant depression, anxiety and substance use disorders. Its lead candidate, BPL-003 — a fast-acting nasal spray — has been granted “Breakthrough Therapy” status by the FDA.
Shares surged 21.6% on Monday following the policy shift. Canaccord Genuity analyst Sumant Kulkarni reiterated a “Buy” rating on the stock and raised his price target to $15, or 206% above where the stock sits today (4).
Another notable gainer was GH Research (NASDAQ:GHRS), with shares up 17.2% on Monday.
The company’s lead program centers on GH001, an inhalable therapy based on 5-MeO-DMT — a fast-acting psychedelic compound — being studied for treatment-resistant depression.
Earlier this year, GH Research reported that its Phase 2b trial met its primary endpoint in a randomized, placebo-controlled study, a key milestone that supports further development of the therapy (5).
Like its peers, the company has drawn increased investor attention following Trump’s executive order. H.C. Wainwright analyst Patrick Trucchio has a “Buy” rating on the company with a $70 price target — 226% above the current levels (6).
While the recent rally has put psychedelic stocks back in the spotlight, it may be worth keeping a longer-term perspective.
Many of the companies in this space are still in the clinical stage, meaning their therapies have yet to receive full regulatory approval. Even with encouraging trial results and a more supportive policy backdrop, drug development remains a long and uncertain process — with outcomes that can shift quickly based on new data or regulatory decisions.
That can translate into sharp swings in share prices, especially for smaller biotech firms that often have limited revenue and depend heavily on future breakthroughs. At the same time, the sector is evolving quickly. Clinical updates, FDA decisions and policy changes can all act as catalysts — making it harder to separate long-term opportunities from short-term hype.
For investors trying to stay ahead of those shifts, research tools like Moby can come in handy. Their team of former hedge fund analysts does the heavy lifting — breaking down the market, flagging quality stocks, and making the research easy to digest.
In fact, across nearly 400 stock picks over the past four years, Moby’s recommendations have beaten the S&P 500 by almost 12% on average. Their research keeps you up-to-the-minute on market shifts, and takes the guesswork out of choosing investments — biotech or otherwise.
Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.
The U.S. stock market has long been a powerful engine of wealth creation, but building a fortune isn’t about putting all your eggs in one basket.
Diversification is key — and according to Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, there’s one effective diversifier that tends to get overlooked by many investors: gold.
“People don’t have, typically, an adequate amount of gold in their portfolio,” he told CNBC last year. “When bad times come, gold is a very effective diversifier.”
Long viewed as the ultimate safe haven, gold isn’t tied to any single country, currency or economy. It can’t be printed out of thin air like fiat money, and in times of economic turmoil or geopolitical uncertainty, investors tend to pile in — driving up its value.
Despite a recent pullback, gold prices have surged by more than 40% over the last 12 months.
Other prominent voices see further potential. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.
Prominent investors like Dalio often stress the importance of diversification — and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.
That message feels especially relevant today. Nearly 40% of the S&P 500’s weight is concentrated in its ten largest stocks, and the index’s CAPE ratio hasn’t been this high since the dot-com boom.
This is where, for many investors, alternative assets come into play. These can include everything from real estate and precious metals to private equity and collectibles.
But there’s one store of value that routinely flies under the radar: It’s scarce by design, coveted worldwide and frequently locked away by institutions.
We’re talking about post-war and contemporary art — a category that has outpaced the S&P 500 with low correlation since 1995.
It’s easy to see why art pieces often fetch new highs at auctions: the supply of the best works of art is limited, and many of the most desirable pieces have already been snatched up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, purchasing art has been a domain reserved for the ultra-wealthy — like in 2022 when a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history (7).
Now, Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy — can help you get started with this asset class. It’s easy to use and, with 27 successful exits to date, Masterworks has distributed more than $65 million in total proceeds (including principal).
Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks can handle all the details, making high-end art investments both accessible and effortless.
New offerings have sold out in minutes, but you can skip their waitlist here.
Note that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at masterworks.com/cd.
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YouTube (1); Compass Pathways (2); TipRanks (3),(4),(6); GH Research (5); Christie’s (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.