Marijuana Stock News
The marijuana stock market is a constantly updating, evolving beast. There’s so much going on day to day in terms of marijuana stock news that it feels like you can’t even keep up sometimes. Because unlike other industries, marijuana stock news is only half about pot stocks, with the other half firmly focused on the political side of one of the most controversial drug movements around: U.S. weed legalization.
So when it comes to pot stocks, they can be some of the more taxing investment opportunities around, even if their potential payoff may warrant that extra legwork on the investor’s part. It’s one of the reasons I like writing about weed stocks so much—I get to combine my passion for politics with my interest in finance and help everyday investors make the right moves in the market by seeing what’s ahead over the horizon.
Marijuana Stock News
U.S. Weed Legalization
No single event in my mind would have a more profound effect on the marijuana stock market than a total U.S. weed legalization policy put in place by the government. While we’re still long ways away from that, even if the majority of Americans have come out in support of legal marijuana, there are some promising signs that point towards a green future.
The most important development would be the bill proposed by Sen. Cory Booker (D-NJ), who not only wants to legalize the drug, but also actively encourage and incentivize the remaining states to follow suit, not to mention dissuade drag on the law by penalizing states that don’t adopt legalization legislation.
This kind of changeover and confluence of ideals has created a difficult balancing act for both legislators and pot activists. Ultimately, for marijuana legalization U.S. to truly blossom, the country needs to have federal protections in place for the drug. Otherwise, no matter how many states pass legislation allowing medicinal and recreational use, there’s no guarantee that the federal government won’t send its agents in to shut the whole operation down. While that scenario is unlikely, the mere threat of it is still daunting for investors.
Not to mention that transportation and shipment of the drug are made needlessly complicated by the current laws in place.
.S. Pot Laws 2017
In direct opposition stands the Trump administration, which has taken a rather regressive view on the legalization of pot in the U.S.
While President Trump went back and forth during the campaign about what he would do concerning marijuana laws in the U.S. (which, to be fair, he did on a number of different issues), he initially said he would follow the Obama model and leave it up to the states. Of course, he never cited Obama by name, but that was the gist of his position in several interviews.
Fast forward to now, and we have a very different Trump on our hands. Part of that, of course, is fueled by the appointment of Attorney General Jeff Sessions.
Sessions is one of the most adamant drug crusaders of our day, and has targeted marijuana as a drug that ought to be curtailed in its use and its proliferation as a legalized substance.
New Marijuana Stock Opportunities
Medical marijuana and recreational marijuana are both well-covered in terms of how they project to be big, billion-dollar businesses in the near future. But what about other industries that are developing around marijuana?
Just take at the marijuana real estate stock chart below, for example.
For instance, if a marijuana grower is operating in Colorado and is growing its product, making a living, abiding by the law, there’s still nothing stopping federal agents from coming in and shutting everything down. Then the company would effectively be killed off and sitting on a ton of land that it can’t do anything with at the moment. That would drive it potentially towards bankruptcy or at the very least create an environment where opportunistic buyers would come in with low-ball offers on the land, looking to take advantage of the misfortunes of the grower.
The marijuana real estate business helps cut these risks for marijuana producers by leasing the land to the companies. The result is that the growers are not on the hook for millions in terms of land investment should they ever be shutdown, while the marijuana real estate company collects rent so long as the marijuana company is in business.