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. 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. Kennedy Jr. 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. 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 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. But the thesis was never about clean execution in year one. It was about whether a regulatory shift, any regulatory shift, could change the entire trajectory of the space. Because in something like psychedelics, policy is not just a factor, it is the factor.