Cannabis stocks were mostly trading lower Wednesday and for good reason: a “blue wave” result from Tuesday’s presidential election isn’t going to transpire, CNBC’s Jim Cramer said on “Squawk on the Street.”
What Happened: Heading into Tuesday’s election, a major Democratic victory across multiple branches of the government was considered to be a major catalyst for cannabis stocks.
“There was a belief that a blue wave would immediately mean that everybody can start smoking recreationally and drinking,” Cramer said.
Arizona, Montana, South Dakota and New Jersey all legalized recreational marijuana on Tuesday.
See Also: Oregon Becomes First US State To Decriminalize Drug Possession, Begins Psilocybin Program
Why It’s Important: Many people were excited over the prospect of a Democratic-controlled House and Senate working with a Biden White House to quickly transform the weed sector into a “legitimate industry” but “that is not happening,” according to…