Highest in The Room 📈
Highest in The Room
With Democrats taking the Senate and Biden coming into power, many are bullish on Marijuana. This confidence is reaffirmed by the past, because when Biden won the election back in November, some stocks in the industry saw more than a 50% rise. Many analysts say this is just the beginning and there is much untapped potential. One of the reasons for this is because currently, regulations prevent all plant-touching cannabis companies in the U.S. from being listed on the Nasdaq or the New York Stock Exchange, but that could change if cannabis is removed from the list of federally regulated substances.
What this policy would look like is still yet to be clear, with some saying the legislation will only come out in the back half of 2021 or the first half of 2022. On the bright side, this reform is coming to fruition on a smaller scale with potential revenue boosts from new states beginning the legal sale of marijuana after voters in five states approved to legalize the use of marijuana either recreationally or medically. On the other hand, many bears don’t see marijuana as a competitive industry. Many think the existence of the black-market limits price increases and the ability to sell to customers. Moreover, because alcohol and tobacco companies are larger it will be tough to compete. Do you think marijuana will rise in 2021? Or is it too early to tell?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.