Reuters: Cannabis Stocks Rise as Voter Approval Grows
Cannabis stocks remain extremely volatile, but positive electoral news pushed up their value following the 2018 midterm elections. While there will be plenty of ups and downs in the marijuana market, we can expect to see more electoral victories in 2019 and beyond both domestically and internationally, as Reuters reported:
Cannabis shares initially rose upon the passage of ballot initiatives in several states approving marijuana use. Michigan became the 10th state to approve recreational use of marijuana, while Missouri and Utah passed measures to legalize medical use of the drug. A measure to approve recreational marijuana use in North Dakota failed, however. The drug remains illegal under U.S. federal law.
Sentiment is turning in marijuana’s favor internationally. Mexico’s next interior minister, Senator Olga Sanchez, told Reuters that a bill would be presented this week that would permit companies to grow and commercialize marijuana.
Two senators, Colorado Republican Cory Gardner and Massachusetts Democrat Elizabeth Warren, have sponsored a bill that would leave determining the legal status of marijuana to states, thereby shielding cannabis companies from federal prosecution.
Also, two narrower bills regarding marijuana could be viable, especially as the Democratic Party takes control of the House of Representatives, according to analysts at Cowen & Co. The Safe Act would permit banks to provide services to cannabis companies in compliance with state law. The Veterans Equal Access Act would allow doctors in the Department of Veterans Affairs to authorize medical cannabis for patients in states where such use is legal.
It is clear that the global marijuana market will only be growing over the coming years. Canada was just the beginning and now Mexico and the United States are in a race for the second NAFTA nation to legalize and regulate cannabis. While European nations are lagging behind a bit on adult-use laws, the continent is making huge progress on the medical front and full legalization won’t be too far behind.
The cannabis industry isn’t for the faint of heart and it is best to have a true love of the plant and a long-term view of the industry. While the regulatory hurdles and political battles ahead will pose issues wherever you may do business, overall the future looks extremely bright.
Learn the latest about cannabis politics, business, and culture at the next International Cannabis Business Conference in San Francisco, California, on February 7-8. Don’t miss your opportunity to network with top investors, entrepreneurs, and advocates from the Golden State and around the world, while saving money, by purchasing your early-bird tickets by January 18th. After San Francisco, the ICBC will be traveling to Barcelona, Spain, on March 14th for a special event with Spannabis, before returning to Berlin, Germany, on March 31st-April 2nd. Stay tuned for some more exciting destinations soon!