The web is a “lean forward” medium in which people engage and participate. By contrast, television and movies are passive, “lean back” media.

It’s always gratifying to me when readers like you lean into our content and are sufficiently stimulated to send me letters.

As usual, the latest batch of letters touched upon a diverse range of topics. Here are the ones that stood out.

Late-night scam artists…

“You often advise us that the first rule of responsible financial management is to pare down our debt. I have more debt than I’d like and I see these ads on television in which companies offer to help people get a handle on their debt. Are they reputable?” — Sally R.

Sally, in a word, no. These scams are all the rage on late-night television. The ad usually starts with a montage of average people, tormented by too much debt. A distinguished-looking fellow in a suit (often a washed-up former congressman) suddenly appears and in resonant tones, promises to slash your debt by dramatic amounts. All you need to do is call the 1-800 number on your screen and salvation from debt is yours.

Here’s the reality: Debt management companies solely exist to pick your pocket. They charge sky-high fees and they don’t eliminate your debt; they merely repackage and consolidate it. At the end of the day, you still have the same debt, but now, on top of your debt, you’ve just spent a large fee to a company that merely played paper games with it.

The same applies to companies that promise to help you escape your responsibilities from the IRS. These tax scamsters start to come out of the woodwork during the lead up to tax season. Slash your overdue taxes by huge percentages, simply by calling that 1-800 number? It can’t be done.

Read This Story: Fraud Alert! Six Common Consumer Rip-Offs

Meanwhile, federal, state and local law enforcement authorities are reporting an explosion of scams. Be on your guard.

Water: The ultimate commodity…

“I’ve noticed that some OPEC countries, particularly the Saudis, are trying to diversify their economies and reduce their dependence on oil revenue. Do you see any investment opportunities in this trend?” — Lenny K.

Human beings will continue to need water, regardless of the cyclical gyrations of the stock market and economy. Pollution, urban sprawl and climate change are destroying potable water sources.

Let’s focus on OPEC-leader Saudi Arabia. Among the desert kingdom’s attempts to modernize its oil-dependent economy is a huge investment in water purification, production, storage, and distribution. The House of Saud knows that water and renewable energy, not fossil fuels, are the growth opportunities of the next several decades.

Read This Story: Power Shift: Renewables Projected to Dampen Oil Demand

One of the surest ways to make money in a turbulent world is to invest in unstoppable trends that are transforming societies and economies. When a powerful oil-dependent nation such as Saudi Arabia embraces the water industry, well, it should tell you something.

According to the World Health Organization, about 2.2 billion people around the world do not have safely managed drinking water services, 4.2 billion people do not have safely managed sanitation services, and 3 billion lack basic handwashing facilities.

Consider investing in water utilities. These stocks tend to be recession resistant and provide not only growth but the stable income you’d expect from utilities.

Drug stocks: ignore the political grandstanding…

“There’s been a lot of talk from lawmakers lately about cracking down on so-called ‘obscene’ drug prices. I’m afraid new laws will hurt the profits of the pharmaceutical companies. Should I avoid drug stocks altogether?” — James G.

Absolutely not. Politicians routinely bash Big Pharma for its purported sins, to score political points. That’s especially true during election years, so you can expect the 2024 presidential election to be rife with expressions of populist outrage about drug prices.

To be sure, some companies are guilty of charging excessive prices, but you can’t paint the entire industry with the same brush. Legislation to curb drug prices typically makes colorful headlines but rarely goes anywhere in Congress.

The interests of drug companies are well protected because they’re major campaign contributors to both parties and they employ an army of lobbyists. I’m not a fan of this dynamic in the nation’s capital, but you should see our imperfect world the way it really is and invest accordingly.

Turn to pharmaceutical stocks for long-term wealth building. The major drug providers typically enjoy strong cash flow, rock solid balance sheets, and long histories of earnings and revenue growth. They’re “essential services” plays that are recession-resistant.

Also worth considering are biotech firms involved in medical marijuana. Sales for medical as well as recreational marijuana are projected to post significant multi-year growth, as depicted by the following chart:

Medical marijuana is one of the hottest corners of the biotechnology sector. The potential this wonder-herb packs for alleviating symptoms of myriad diseases makes biotech companies developing cannabis-based treatments among the most exciting and potentially lucrative investment opportunities today.

WATCH THIS VIDEO: Cannabis Legal Reform Rolls On

As cannabis cements its status as a consumer staple, some pot stocks are superb investments. But many others are not. You need to conduct due diligence. That’s where my publication, Marijuana Profit Alert, comes in. By applying my proprietary screening methodologies, I pinpoint for subscribers the most attractive plays on the psychotropic revolution. To learn more, click here.

Got a question or feedback? Shoot me a letter: mailbag@investingdaily.com.

John Persinos is the editorial director of Investing Daily.

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