Marijuana News Today: Marijuana Legal in Michigan; Pot Stock Market Continues to Fall

Marijuana News Today: Marijuana Legal in Michigan

Marijuana News Today

The marijuana news today follows a trend we’ve seen developing over the past month or so, wherein the future looks positive while the present is bleak.

Let’s cover the future first.

Michigan marijuana legalization took effect today, with residents now able to legally partake of the drug without fear of reprimand by the government.

The catch is that it’s still illegal to sell the drug, buy the plants, or to bring it in from other states. Adults are allowed to grow and harvest it for their own use (if they already had the plants before the law came into effect), and those who are gifted pot are legally allowed to indulge. (Source: “Recreational marijuana is legal today in Michigan. Here are 5 things to know before lighting up.” Michigan Radio, December 6, 2018.)


Only people with medical marijuana cards are legally allowed to buy marijuana, and recreational marijuana retailers won’t be allowed to open until about a year from now.

It’s a temporary measure, as you’ll note that Michigan only legalized pot after the November midterm elections.

Remember that it took years for many other states to implement a licensing and sales system, and it will likely be the same situation for Michigan.

What this means, of course, is that the 10th U.S. state to legalize marijuana is already on an accelerated path toward implementation, which speaks to the growing ease that other states will have in 2019 when it comes to legalization.

This is the result of marijuana legalization becoming routine.

Essentially, instead of having to design a system of legalization from the ground up, states can instead pick and choose the features they like from places that have already legalized the drug.

This is going to make the process that much easier in the future, with several states likely to follow suit in 2019.

New Jersey is very close to legalization, with its state Congress voting on a marijuana measure that is virtually assured to pass. After that, New York seems a likely candidate for marijuana legalization in 2019.

All this will continue to swell the already impressive marijuana tide that will prove so large and powerful that the federal government will have no choice but to react.

This reaction, of course, will take the form of federal legalization. Of that there can be no doubt.

While Congress is still replete with holdouts and old-school anti-marijuana crusaders, they are a dying breed that will give way to a new generation of bipartisan support for marijuana legalization and regulation.

While I don’t think that Donald Trump’s administration is going to push through any significant pot legislation, I firmly believe that the next president (of either party) has a good chance of legalizing marijuana in the U.S. in the very near future. That would likely send marijuana stocks soaring.

CGC Stock

The marijuana news today is positive on the political side,  but not so much on the stock market side.

As I explained yesterday, the massive drop in the broader stock market and increased fears over trade wars and the like have hurt pot stocks more than most as investors abandon riskier plays in uncertain times.

This is not an unusual move, nor does it speak to a weakness in the marijuana industry more broadly.

Instead, this pullback is largely being motivated by larger market forces, with marijuana stocks simply caught up in the wake of that calamity.

Which brings us to Canopy Growth Corp (NYSE:CGC).

CGC stock has nosedived by about 16% over the past five days and has endured a 10% collapse in early-morning trading today.

Canopy Growth stock is not any more vulnerable than other marijuana stocks to this market-wide fall. On the contrary, there’s more reason to trust CGC stock than most other picks.

At the same time, the company is not going to be able to weather this painful climate unscathed.

The plus side is that, like with all market contractions, this leaves investors with steel nerves to profit.

As marijuana stocks fall in value and the market downturn reaches its lowest point, the stocks will be ripe for investment. That’s because this pullback will inevitably be followed by a strong run across the industry.

Being prepared for that opportunity is key; huge profits could be gained by savvy investors.

For many current shareholders, the strategy is to weather the storm to see profit again on the other side.

TLRY Stock

One of the more impressive marijuana stocks in recent weeks and months is Tilray Inc (NASDAQ:TLRY). It appears to be best suited to beat the market downturn.

The stock is down about 13.5% over the past five days, and it dropped by over four percent in early-morning trading today.

Still, these numbers are better than most of its competitors, and TLRY stock remains one of the better performers in these weak economic times.

This speaks to the market’s love of Tilray stock at the moment. The company has not suffered nearly as much as others in the correction (and now full-blown downturn).

While I fully expect Tilray stock to take some damage, it appears that it may also come out the other side the least hurt.

CGC & TLRY Stock Performances

The CGC stock (black line) and TLRY stock (blue line) performances from the past week are seen on the chart below:

Chart courtesy of

Analyst Take

These are certainly not the brightest times in the marijuana news today.

While legalization efforts in the U.S. continue apace and give us a lot to be optimistic about in the near future, the present situation is certainly bleak.

The marijuana industry is in the throes of a massive market downturn that is largely the result of a weak overall stock market—with tech sectors, banks, and a good number of other industries also feeling the burn.

The result is that the market is likely headed toward a prolonged contraction, which means that investors have to play the long game now.

Short gains are going to be very difficult to come by, but investing at the right time could result in profits similar to those witnessed during the first marijuana rush several years ago. There’s a potential for 100% gains for those who play their cards right.