Will marijuana stocks lose their high under Trump?
KINGSTON, NY, 21 December 2016—Since Donald Trump won the White House, caution and concern about pot's economic future has hit the cannabis world.
This past Election Day, states across America legalized marijuana for recreational and medical use... getting high or getting better. However, despite pot now being legal in 28 states, but still federally illegal, producers, marketers and sellers driving the flourishing cannabis industry have dampened their hopes after Trump selected Sen. Jeff Sessions of Alabama - a man tainted with a "Reefer Madness" reputation - as US attorney general.
However, while some marijuana-related stocks are on a downer since Sessions was nominated, a key consideration has been generally overlooked: Sessions stands out in Congress for wanting to cut harsh prison sentences for street dealers selling crack and cocaine. Thus, considering his stances against strict penalties for dealing drugs, we forecast that the consensus he will attack the entrepreneurial marijuana momentum sweeping many parts of the nation is more fear-based than fact-based.
Indeed, the 2016 election was between Hillary Clinton, a career politician, and Donald Trump, a consummate businessman. Now, with the business of America back to business, and big bucks being made in the newly booming cannabis industry, as his track record proves, where there's money to be made, The Donald will seize the opportunity... just as he did with his Trump casinos when gambling was legalized.
Also, Trump has not expressed any strong anti-pot stance. Rather, he has affirmed it's a state's right, and not the federal government's right, to dictate the business of business.
Not a smooth path
While the fast-moving track for legalized marijuana is teeming with profit opportunities for Ontrendpreneurs® (cutting-edge, trend-focused entrepreneurs) and multinationals... and with visions of grand tax revenues for states that legalize it... the trip will be riddled with twists and detours.
For example, given entrenched political self-interests and competing business interests, such as Big Pharma and Big Booze competing for customers, laws in some states will be written with strict restrictions and/or to favor special interests.
Yet others, with their eye on the bottom line, will follow Colorado's model. It created a booming industry that has filled tax coffers with more pot revenue than from alcohol, all while increasing weed-happy tourism traffic.
TREND FORECAST: Serious investors should be mindful of how a pot law is written. Studying the political and procedural climate in states passing marijuana laws is critical; the range of differences is wide.
With growing popular support for marijuana legalization, we forecast a promising financial pot future. In particular, we forecast sharp growth in food- and beverage-infused marijuana products. These are becoming easier to produce with wider profit margins, are growing in popularity and are more easily branded and marketed, appealing to consumers put off by pot as a smoking product.
Further, as retail outlets grow, so does the need for equipment and training to produce the products. That's another ripe investment area.