The 2020 U.S. presidential election is a green wave – the U.S. cannabis industry has emerged as a big winner.
Five more U.S. states voted to legalize medical or recreational cannabis. That includes:
- Arizona: recreational cannabis.
- New Jersey: recreational cannabis.
- Montana: recreational cannabis.
- South Dakota: recreational and medical cannabis.
- Mississippi: medical cannabis.
Cannabis stocks were already rising sharply for the last month as investors anticipated good news. After the good news became official, cannabis stocks jumped even higher.
Here are the gains in just the last four weeks.
Canopy Growth Corp (CGC): +60%
Curaleaf Holdings (CURLF): +51%
Green Thumb Industries (GTBIF): +48%
Cresco Labs (CRLBF): +37%
The gains build on the incredible run cannabis stocks have been on since the COVID lows from March.
In the last six months:
Canopy Growth Corp (CGC): +139%
Curaleaf Holdings (CURLF): +279%
Green Thumb Industries (GTBIF): +375%
Cresco Labs (CRLBF): +286%
Take a look at the gains below.
What Should We Expect Moving Forward?
I see more potential good news on the horizon.
A Joe Biden victory would be another strong catalyst for the U.S. cannabis industry.
If the democrats take the senate and own both chambers of congress I see a high probability of significant cannabis reform in 2021.
Pennsylvania governor Tom Wolf is calling for cannabis legalization as soon as possible to help combat tax losses from COVID.
New York governor Andrew Cuomo wants to legalize as soon possible, looking for a vote in April.
Connecticut governor New Lemont wants to legalize to prevent its resident from traveling to other states to buy cannabis.
Mexico is on schedule to vote on legalize recreational cannabis in December – that would leave the U.S. as the only country in North America that hasn’t legalized cannabis at the federal level.
This is why analysts are predicting enormous growth for the U.S. cannabis industry in the next five years.
Here are some more details from mjbizdaily.com.
Retail sales of medical and recreational cannabis in the United States are on pace to eclipse $15 billion by the end of 2020, an increase of approximately 40% over 2019 sales figures, according to exclusive projections from the 2020 edition of the Marijuana Business Factbook.
Total U.S. sales could rise as high as $37 billion by 2024, according to exclusive projections from the latest Factbook, which was released Monday at MJBizConNEXT Direct.
As you can see, the cannabis industry is loaded with positive catalysts in the next six to twelve months and I expect that to be very good for cannabis stocks.
After the string of gains, potential investors are asking an important question.
Is It Too Late to Invest?
The answer is no.
The cannabis industry is still in the early stages of growth, in the U.S. and the world.
Even though cannabis stocks are up a lot in the last six months, the four stocks mentioned above are still trading well below the 52-week high. Take a look below.
The Big Picture
Cannabis stocks had a terrible year in 2019 and early 2020. However, the tide has shifted. Cannabis sales have exploded higher this year and investors are enthusiastically pouring back into the sector. This looks like the beginning of another multi-year trend higher.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading. Author Michael Vodicka owns shares of Cresco Labs (CRLBF), Canopy Growth Corp (CGC), Green Thumb Industries (GTBIF), Curaleaf Holdings (CURLF).
