Marijuana News Today: U.S. Marijuana Legalization Bolstered by Poll

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U.S. Marijuana News Today

In another step toward U.S. marijuana legalization, the marijuana news today sees the release of a poll showing that a large percentage of Americans have a positive outlook on pot’s medical benefits. In fact, the study suggests that they may actually think too highly of pot.

According to a report in the Annals of Internal Medicine, a nationally representative online survey of more than 16,000 American adults found that many believed marijuana to have more beneficial medical effects than what’s actually been proven. (Source: “Americans’ view of marijuana is rosy, and unscientific,” Reuters, July 23, 2018.)

This is both good and bad. For our purposes, it’s primarily good.

The bad part is that there is an information deficit. Americans seem to think that weed has more restorative effects than it actually does. With misinformation becoming the defining aspect of the Internet age, that’s a negative as far as society is concerned.

“The American public has a much more favorable point of view than is warranted by the evidence,” said the study’s lead author, Dr. Salomeh Keyhani of the University of California, San Francisco. “Perhaps most concerning is that they think that it prevents health problems.”

But the good part is that the perception of marijuana in the U.S. has shifted drastically. That’s going to play a big role in when U.S. marijuana legalization comes down the pipe.

At this point, I’d put it at a certainty that U.S. marijuana legalization is bound to happen. But as I’ve always maintained, the question is one of time. Polls like these—while potentially serving as ammunition for those who oppose pot legalization—show that the conversation has shifted in the U.S. from one of anti-pot to one of pro-pot.

The majority of Americans in poll after poll have shown their openness to marijuana legalization. It appears that in this latest survey, Americans are actually too optimistic on marijuana.

The takeaway here is that there is only so long that legislators can resist the will of the American people.

While some states and certain demographics are likely to remain ceaseless marijuana opponents, the numbers simply don’t support them as dozens of millions of Americans now have access to marijuana in one form or another.

And as I’ve always maintained, U.S. marijuana legalization is the Holy Grail of pot markets. Look at the spike we’ve seen in the marijuana industry over the past two years from Canada announcing legalization…the U.S. would certainly bring on a second green rush of proportions that would put the Canadian marijuana legalization build-up to shame.

The upshot is that U.S. marijuana legalization is only getting closer with each passing news day, and that’s going to be a huge boon for marijuana stocks.

Marijuana Stock Performance

The marijuana news today also bodes well for the pot stock market as we’re seeing a bit of a bounce back following several dismal weeks.

Chart courtesy of StockCharts.com

The stock chart above compares the performance of the two marijuana stocks we’re looking at today: Canopy Growth Corp (NYSE:CGC) and Aphria Inc (OTCMKTS:APHQF, TSE:APH). CGC stock is shown using the black line while Aphria stock is shown using the blue line.

Canopy Growth Stock News

Canopy Growth Corp is up about five percent to start the week.

CGC stock has been one of the better performers on the year, of course, but that story changed when the industry took a big hit following the announcement of the Canadian marijuana legalization date.

With the date set, stocks exploded upward at a dizzying pace, only for the subsequent weeks to see much of those gains erased.

Canopy Growth stock suffered alongside many other marijuana stocks, dropping near double-digits for several weeks in a row.

But late July has started off strong for CGC stock and several other players in the industry, potentially pointing to the end of the correction.

And the end is coming. There is no doubt in my mind that as we near legalization, hype will pick up again and see these stocks bounce back, especially CGC stock.

The doubts come in when you consider just how sustainable those gains will be. But as a long-term prospect beyond October and into 2019, few companies are as enticing to me as CGC stock.

Aphria Stock News

Another pot stock showing some life this week is Aphria Inc. And boy, did Aphria stock need this rebound.

The year has been a brutal one for Aphria stock, seeing the company plummet by over 40%.

I waited and waited to see when the company would have fallen off enough in value to be considered properly priced, but Aphria stock missed all those opportunities.

I’m still wary of the company’s future considering its difficulties in 2018, but the company is up about six percent on the week, so it’s worth keeping an eye on.

Analyst Take

As with a lot of recent developments, the marijuana news today only further lends credence to the position that U.S. marijuana legalization is on the way.

Americans are more positive on pot than they’ve ever been. That should eventually translate into legislative action.

Meanwhile, the pot stock market looks to be making a decent recovery this week, making late July a good time to be a marijuana bull.