You’re either for it or against it. There’s not many people in the middle.
And I’m not here to convince you of either side… I’m just here to tell you what is happening.
Marijuana.
It’s been a hotly debated topic for over 100 years in the United State.
There are some powerful arguments that marijuana is not all that bad (I’ve written about it here), while others will say it’s evil.
Whatever you view is, the sixth largest economy in the world – California – may make it legal this fall. I’m not talking about medical marijuana (that’s already legal in the Golden State), I’m talking about recreational marijuana use.
Proposition 64 is on the ballot in November and sample polling shows the measure passing by over 60% in several different polls.
If marijuana becomes legal in California, the repercussions would be enormous.
And that’s not even counting the ‘gray cultivation market’ which now brings in $9 billion to $13 billion annually – and isn’t even taxed.
California is “seen as a bellwether: If the world’s sixth-largest economy legalizes weed, other states — and even countries — would likely give marijuana legalization a close look in coming years.”
Because of the close proximity and likeness in culture, Mexico would have significant pressure to legalize the ‘drug.’
Additionally, Mexico’s President Enrique Peña Nieto is “a proponent of medical cannabis use and advocate for decriminalizing possession of up to an ounce for all adults.”
So how can we make a play here?
We can buy marijuana stocks. I’ve already made list of marijuana stocks that you can read about here. I listed the top stocks by market cap, so this list isn’t necessarily a recommendation.
I do however, have one favorite that I have been holding for a while now, and have seen big gains. I believe the stock will go much, much higher; especially if California votes to legalize recreational marijuana.
I’ll share that with you in the future.
Have a good weekend.
You may think that investing in marijuana is ‘unethical,’ which is a completely personal thing. I do want to point out that tobacco companies like Altria and alcohol companies like ABInBev are held in almost all diversified mutual, retirement and hedge funds. So, just know that you may already be invested in ‘unethical’ companies.
