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.
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.
Economically, “that would put the state’s medical and recreational market on track to hit $6.5 billion in revenue by 2020 — up from $2.8 billion in 2015.”
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.
It seems like your list of marijuana stocks from your previous post has some big clues as to which stock is your favorite….
Love your writings
I just found your site Cody. Very nice!
I’m already invested in marijuana stocks and have no reservations about those investments. I would agree that, depending on the company, it’s a good place to park money in the short-term. If California legalizes, the MJ sector will definitely see action again. My concern is how spread out the MJ sector is now though. In 2014 there were a only handful of OTC, OTCBB, and PINK stocks that a trader could sift through. At this point it seems that there are nearly 100 MJ tickers. Do you suppose that (assuming CA legalization which looks ever likely) we’ll see a run greater than or equal to 2014 or do you think that the saturation of these new tickers will somewhat thwart that from happening?
That being said, I also agree with your recent article on Colombia. I was just backpacking through there in June and I was quite surprised at the state of affairs there. It is difficult to say whether the ceasefire will truly be maintained, but the country itself was quite a lot more orderly than I had expected.
I hope all is well wherever you are and thanks for the articles, I’ll definitely be back by to read more.
I have a HUGE report coming soon about MJ stocks. Hopefully it will answer some of the questions you have and maybe give a little more insight into other areas.
Yes, Colombia is very interesting. I also have something coming on that. It’s at least a month off, but it is very in depth and very accurate (first hand).
I too jumped in with some big bets prior to elections (I know that was not ‘early’) . However, while I thought the frenzy would last into Dec, there is already a huge decline in MJNA/MCOA/and just any other. Any insights as to what’s happening?
Many early investors are taking profits and some fear a Trump presidency. The MJ story is not over yet…
The links in your posts are very hard to tell apart from the regular text.
Also, can we get a refreshed “Cody’s Favorite Cannabis Stock” for 2018 here in the comments?