Marijuana News Today
In the marijuana news today we have Tilray Inc (NASDAQ:TLRY) continuing its stellar run while an increasing number of older Americans are using marijuana, indicating an expansion of the market.
A study published in the journal Drug and Alcohol Dependence indicates that increasing numbers of middle-aged and older adults are using marijuana with higher frequency and in larger doses. (Source: “More Older Americans Are Turning To Marijuana,” NPR, September 12, 2018.)
The analysis comes from data gathered in the National Survey on Drug Use and Health from 2015 and 2016. About nine percent of U.S. adults between the ages of 50 and 64 used marijuana in the previous year, according to survey results. About three percent of people over 65 used the drug in that time period.
Compared to earlier years, this is an impressive jump. Only about seven percent of middle-aged Americans used marijuana in a survey conducted in 2013, and only 1.4% of people over 65 partook of the bud.
And the good news for the marijuana industry is that many of these people have only gotten started recently, with 5.7% of middle-aged respondents saying they tried marijuana in the past month.
And a good chunk of the seniors—about 25%—said that, in fact, their doctors gave them the go-ahead to try pot.
What This Means for Marijuana Stocks
The marijuana news today is important in that it further reveals just how accepted pot has become in the U.S.
While the federal government still has a prohibition in place that technically applies to the entire country, as more states legalize the drug and as it becomes more accepted as a medicine, it only stands to reason that the stigma that has dogged pot for decades will begin to melt away.
That all subsets of Americans from a variety of backgrounds and demographics are using pot only goes to show that the drug has ascended to a more permissive place in the American mind.
And that’s great news for pot stocks.
The battle for legalization in the U.S. is already over; it’s just a matter of time.
There’s simply so much momentum behind marijuana that it appears virtually impossible for the U.S. not to legalize the drug within the next few years.
But as a growing number of Americans use the drug, that timeline shrinks.
Rather than, say, seven years out, we could see legalization hit in five, maybe even three years in the most optimistic projections.
And of course, when the U.S. does eventually relax its marijuana laws, we’re going to see a massive boost to the cannabis industry and pot stocks.
The opening of the largest and richest market on earth is only going to further fuel the nascent marijuana industry, pushing it to new heights and allowing massive institutional investors to begin pouring in capital.
It’s the third time in a row that Tilray stock has been featured in our Marijuana News Today articles, but the company simply won’t quit gaining, even while so many other major players in the industry see regression.
Tilray stock is up once more in early-morning trading, this time jumping nearly 10% again for the third day in a row.
There’s simply no way to slow down TLRY stock at this point.
While I do think that a correction will eventually hit TLRY stock, I was wrong in predicting that it would come sooner rather than later.
While 10% gain days can’t continue on indefinitely, for now, the stock is a winner and continues to climb at an astronomical rate.
The company has, however, registered over 40% in gains over the past five days, speaking to its brilliant run on the market.
At the moment, there’s no better short-term gainer in the market than TLRY stock. Even Hexo Corp (OTCMKTS:HYYDF, TSE:HEXO) finds itself down by about five percent in early trading after having had a very impressive run of late. That makes Tilray stock the preferred short-term play.
Canopy Growth Stock
The industry is largely on the downturn today with the exception of Tilray stock. Canopy Growth Corp (NYSE:CGC), often the trendsetter in the industry, is down about four percent in early-morning trading.
Many other marijuana stocks are experiencing days similar to CGC stock, down about three to five percent across the board.
This industry-wide pullback is to be expected as pot stocks have been going wild ever since mid-August, with only a few speed bumps.
As we approach the marijuana legalization date in Canada, I expect marijuana stocks to jump once again and push upward to more gains.
CGC stock, one of my personal favorites in the industry, has stagnated this past week, with little to no movement until its current decline this morning.
I expect that CGC stock will bounce back, however, and mark impressive gains as October 17 nears.
TLRY & CGC Stock Performances
On the chart below are the recent performances of the stocks for Tilray Inc (black line) and Canopy Growth Corp (blue line):
Chart courtesy of StockCharts.com
The marijuana news today is heartening in that it once again shows the changing attitudes of Americans when it comes to marijuana.
Now we see that people of all ages are trying pot, with those numbers only continuing to grow as the U.S. relaxes its marijuana prohibition on a state-by-state level.
The obvious next step is to take that to the federal government, something which we’ve discussed at length.
But the trend is pushing in the right direction, and marijuana legalization only grows nearer with every bit of good news that’s released.
On the pot stock market, meanwhile, we’re seeing an industry-wide pullback in response to the huge gains made by pot stocks over the past few weeks.
But Tilray stock appears to be immune to the industry trend, still growing at an absurd rate that has marijuana investors salivating.
How long it can sustain these gains is questionable, but what isn’t questionable is that Tilray stock is by far the best short-term play at the moment.