Over the last year, we’ve seen countless catalyst for cannabis stocks.
Canada legalized its use. More U.S. states gave the green light for medicinal and/or recreational use. Corporate America quickly woke up to the opportunity. Better, cannabis is just beginning to transform multi-billion-dollar industries, including alcohol, health and wellness, cigarettes, and the retail industry. Even the U.S. Farm Bill accelerated growth.
However, that may just be the start of bigger things to come.
Other big catalysts include STATES.
Otherwise known as the Strengthening the Tenth Amendment Through Entrusting States, it could amend the Controlled Substance act to limit federal interference in state matters such as this. “This is just giving them a level playing field. Respecting the rights of states – it doesn’t force a state to do anything that it doesn’t want to do,” Rep. Earl Blumenauer told Rolling Stone.
Essentially, it would give each state the decision on cannabis.
Two, we have to remember that part of President Trump’s budget proposes scaling back restrictive language that has kept Washington D.C. from legalizing and regulating the sale of recreational cannabis. He’s also asking the public to submit comments to help change the U.S. position on a potential reclassification. Potential legalization could fire up the voter base, considering that 61% of Americans are in favor of legalization.
In addition, global spending on cannabis could reach $57 billion by 2027, according to Arcview Market Research and BDS Analytics.
In their report, “The Road Map to $57 Billion Worldwide Market,” analysts note that the South American market for example could grow from $125 million in 2018 to $776 million by 2027. They also note that Germany could become the leader in the European cannabis market, with Italy expected to see $1.2 billion cannabis sales by 2027.
Controversial or not, the cannabis boom should not be ignored by smart investors.