Marijuana Stocks in 2020
When we look back on the history of marijuana stocks, I believe 2019 will be remembered as the year when they went mainstream.
The first full year of marijuana legalization in Canada, increasing respect from Wall Street, legalization spreading around the world, political support in the United States—there have been so many positive developments in early 2019 that marijuana bulls can’t help but be excited for the future.
With marijuana’s growing acceptance worldwide, I believe that marijuana stocks in 2020 may actually see some of their highest growth rates yet.
Of all the victories mentioned above, none is more important than the growing political movement mounting behind marijuana legalization in the United States.
One sign of this is that all the major Democratic Party presidential hopefuls have come out in support of marijuana reform. While none of the candidates have gone as far as laying out a plan for legalization on the federal level, they have all in one way or another expressed support for legalization of pot in the near future.
This is hugely important since it marks the first time in U.S. history that a major political party has supported marijuana reform, with an inclination toward legalization.
It’s worth noting that President Donald Trump is not seriously opposed to marijuana legalization either. Or at least, he’s never said anything to that effect. That means, even if the Democrats fail to take the White House, the legislative avenue toward marijuana legalization remains very much open.
Several Republican senators will likely be easy to flip if a marijuana reform vote is called in Congress. If that were to happen (Democrats control the House), then the only real impediment to pot reform would be a presidential veto.
Considering that President Trump has yet to take a strong position against pot, there’s a decent chance that he would let such a bill pass.
Which is all to say that, no matter which party wins in 2020, there’s a decent chance that marijuana will be on its way to decriminalization—maybe even legalization—by 2021.
If that ball gets rolling, then marijuana stocks in 2020 will likely soar.
Consider how fast pot stocks grew following the announcement that Canada would legalize cannabis. The U.S. is far larger and far richer than Canada.
I foresee cannabis stocks gaining by hundreds of points in the initial rush after a marijuana bill passes in the U.S.
Furthermore, you’re going to see a lot of new companies crop up in an attempt to take advantage of the hype. While some will be duds, many will see massive growth as they hit the market.
What this means is that, in my mind, the best times are still ahead for the legal cannabis industry. Whether it’s existing pot stocks or ones yet to go public, there are going to be huge gains down the road.
The legal marijuana industry has been one of the most profitable emerging sectors in recent memory, but it still has a lot of room left to grow.
The market is still very limited, with Canada being the only G7 country where the drug has been federally legalized for recreational use.
The near future will likely see a huge shift in marijuana acceptance, with the U.S. likely leading the way. In that case, expect pot stocks to skyrocket.