I’m an early morning person. I’m also addicted to caffeine — it’s an occupational hazard. Today, as I drink my favorite coffee (Jamaican Blue Mountain, freshly ground) and write this column, I’ve decided to address reader letters.

Whether in my personal or professional life, I find it invaluable to occasionally take a step back from the daily noise and reflect on the long view. The questions and comments that I receive via email help me in this regard.

No matter how smart you may think you are, there’s always an opportunity to learn more. Philosophers call it “the open mind,” a willingness to consider different ideas or opinions.

Tomorrow, I’ll get back to analyzing the twists and turns of breaking news. The Federal Reserve and Saudi Arabia will be at the top of my agenda. But for today, let’s dive into the reader mailbag and see what’s on your minds.

Budding profits…

“There seems to be a lot of investor excitement about marijuana stocks. How much of the media coverage of pot stocks is hype? I don’t want to miss out on this investment opportunity, but I don’t want to get burned, either. Point me in the right direction.” — Alan M.

The long-sought normalization of marijuana laws is becoming a reality among an increasing number of countries and U.S. states, spawning a booming industry that’s attracting entrepreneurs, venture capitalists and individual investors. The opportunities for investment profits are enormous.

But you’re right, Alan. You need to be careful.

The time to invest in this fast-growing industry is now, before it matures and the barriers to entry for companies and investors get pricier. You also need to avoid the risky penny stocks that are poised to crash and burn.

The decades-long propaganda war on the cannabis plant produced generations of Americans who grew up convinced that marijuana was the “devil’s weed” only used by society’s misfits and criminals. That’s all changing, as marijuana legal reform sweeps the world.

To be sure, certain federal law enforcement officials in this country are avowed foes of marijuana legalization, but here’s my informed prediction: When it comes to marijuana, these anti-pot politicians will prove to be all talk and little action. There’s simply too much money at stake and at the end of the day the Trump administration is pro-business.

As marijuana evolves from back alley dealmaking to mainstream capitalism, growing numbers of entrepreneurs are cashing in, not only by growing and selling pot but by creating new drug treatments, branded edibles, “marijuana tourism,” vaping parlors, paraphernalia, shops, seeds, fertilizers, trade shows — you name it.

Here’s the rub: many of these companies are small, under-capitalized and extremely risky. You need to stick to quality. Look for well-capitalized companies with actual products and earnings.

The Investing Daily team continually scours the investment landscape for inherently solid marijuana plays. Stay alert for our special events oriented toward “canna-business.”

Stock market correction ahead?

“Do you expect a stock market correction to occur soon and if so, what’s the time frame?” — Daniel K.

Evidence is mounting that tough times lie ahead for stocks. Don’t take my word for it. Economists at major investment banks are sounding the alarm.

Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), JPMorgan Chase (NYSE: JPM), and Deutsche Bank (NYSE: DB) have all warned in recent weeks of a likely stock market correction by the end of this year, due to a host of factors including negative corporate earnings growth, a slowing global economy, and the U.S.-China trade war.

We’re in the late stage of economic recovery; you need to rotate toward recession-resistant sectors. Most recessions are accompanied by bear markets.

Read This Story: Late-Cycle Investing (Before It’s Too Late)

Sectors that historically outperform during the late stage include utilities and real estate. Despite their run-up this year, both the real estate and utilities sectors have further room for growth. They also enjoy insulation from the global trade war.

Dividend-payers are time-proven vehicles for long-term wealth building, but they’re also safe harbors in turbulent seas because companies with robust and rising dividends by definition boast the strongest fundamentals.

If a company has the low debt and healthy cash flow required to throw off juicy dividends, it follows that the balance sheet is sound enough to sustain the firm through corrections and economic downturns.

In search of secular trends…

“Drone attacks against Saudi Arabia, North Korean missile tests, a trade war…the world is going crazy! Can you pinpoint for me a long-term trend that’s a safe and sure bet?” — Darrell N.

Yes, the roll-out of 5G, the next generation of wireless technology. 5G will pave the way for a new wave of technological advancement, which explains why so many companies both large and small are jumping onto the 5G bandwagon.

Read This Story: 5G: The Fight for the Future

The existing standard of 4G accelerated the smartphone boom by allowing a single device to handle a multitude of functions. But 5G’s reach will extend far beyond phones.

5G will facilitate the Internet of Things by allowing several interconnected electronic devices and machines to communicate with each other instantaneously at ultra-fast speeds.

5G adoption enjoys a multi-year upward trajectory. Regardless of trade policy or terrorist attacks in the Middle East, the momentum of 5G can’t be stopped. That spells opportunity for the shareholders of the chipmakers, telecoms, systems builders, and device makers that benefit from lightning quick connectivity.

For our new report on how to profit from 5G, click here.

John Persinos is the managing editor of Investing Daily. Send your letters to: mailbag@investingdaily.com