Canadian marijuana stocks that trade on major U.S. exchanges largely rallied through early November, after five U.S. states voted to legalize cannabis and Democrat Joe Biden won the presidential election. Does that make those marijuana stocks good buys now?
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New Jersey, Arizona, Montana and South Dakota on Election Day approved ballot measures to legalize recreational marijuana. South Dakotans also backed creating a medical marijuana program for people with severe medical conditions. After President-elect Biden’s transition formally began, marijuana stocks jumped again.
Biden has said he supports federal marijuana decriminalization. Vice President-elect Kamala Harris has sponsored the MORE Act, a proposed measure that, among other things, would take pot off the list of controlled substances.
Cannabis-industry executives have also predicted a domino effect — with newly legal states pressuring neighboring states to legalize in an effort to prevent a flight of tax revenue. And they say more legal states increases the likelihood the government takes action to roll back restrictions on a national level.
President Trump has not yet technically conceded the race. Legal reform could be dampened if the GOP holds onto the Senate, where two runoffs set for January will ultimately determine the balance of the chamber. The marijuana industry’s finances are, in many ways,…
