The Cannabis industry may well take off

One industry which has been reacting to the Biden / Kamala presidential election poll increase is that of Marijuana. Aurora Cannabis jumped 9%, while Canopy Growth and Tilray surged over 20% each. It is well understood that Democrats would be supportive of decriminalization of cannabis (despite Kamala’s hard-line past as San Francisco AG), which lead legalization getting its strongest boost from two bits of news:

First was when Senator Kamala Harris stated at the Vice Presidential debate that Biden would decriminalize marijuana at the federal level.

The second pro-weed news came when Vermont Governor Scott stated that he would let a bill for the legalization of recreational cannabis move forward in his state.

In late 2018 the “weed bubble” popped spectacularly. The hype over legalization in Canada failed to translate into the opening of the US market. Recreational cannabis use is legal in 11 US states (33 states have made medical marijuana legal) but at the federal level, marijuana is still an illegal schedule 1 drug (alongside of cocaine and LSD). Demand for cannabis has been strong but only in states where it’s legal. Without approval from the Federal Government, the market size remains limited. A “blue wave” will revive the expectations that cannabis stock will reach new highs (I couldn’t resist).