Trump Get's High On Cannabis Sector With Reform Hints...

When Trump speaks, the markets listen. It’s that simple. For instance, while the markets gave us some of that special ganja juice yesterday, as all 11 sectors closed in the green - Trump decided to go ahead and give the cannabis industry a little taste of its own medicinal powers. (In a good way obvi).

(Source: Giphy)

According to an off the cuff press conference at Uncle Donny’s Mar-a-Lago yesterday, the former president had cannabis die-hards buzzing harder than me during my first college frat party as he hinted at some level of support for cannabis legalization. 

(Source: Marijuana Moment)

This had investors lighting up - not just for their joints, but for their portfolios too as Trump casually mentioned, “As we legalize throughout the country, whether that’s a good thing or a bad thing, it’s awfully hard to have people all over the jails for something that’s legal.” Translation: he’s softening up on dat mary jane, and investors are here for it.

(Source: Market Watch) 

As expected, cannabis stocks rode higher than Seth Rogan and James Franco in “Pineapple Express” going into yesterday’s close with stocks like Tilray Brands and Canopy Growth Corp shooting up +5.71% and +8.29%, respectively - while, ETFs like $MSOS, $MJ, and $YOLO also popped +10.26%, +6.10%, and +4.43%. Meaning, for an industry that’s been heavily scrutinized since, ever, it was a dayum good day for cannabis investors.

(Source: Giphy) 

But in light of being a nonchalant side note from Trump, as some critics may have taken it, this still signals a major shift in political winds for the industry in general. Because with Florida’s Adult Personal Use of Marijuana amendment on the ballot in November, the stakes are higher than Snoop Dogg and Willie Nelson on a Sunday afternoon.

(Source: Giphy) 

For example, if this amendment passes, adults 21 and over could legally possess up to 3 ounces of cannabis. That’s roughly 80 joints, in case you’re counting (FWIW, it’s simple math, not because I have experience with it…). 

However, while Florida’s Governor DeSantis is busy complaining about the smell, Trump’s clearly playing it cool, and possibly salivating at the fact he’s the catalyst this sector has been waiting for. 

(Source: Giphy) 

Now of course, regardless if this is Trump simply feeding his campaign, knowing his comments can move the markets, or not… this federal reclassification could be a seismic opportunity for investors going forward. Why?

Well consider this: Forbes predicts the cannabis market will reach $58 billion in 2028. That’s a whole lot of green—both in plants and profits. And with more states legalizing combined with potential federal action on the horizon, this could only accelerate these numbers to unprecedented growth. 

(Source: Forbes) 

Especially when it comes to stocks like Innovative Industrial Properties, who are leading the charge in an already uncertain market environment, as the stock is up +56.35% YTD (with Canopy Growth pacing second while being up +43.39% YTD). 

(Source: Zacks Ratings)

So understandably, Trump’s comments have sparked hope that a more cannabis-friendly federal stance might emerge in the near future as he also made note to say “As we legalize it, I start to agree a lot more”. 

Now with that said, in no way am I saying YOLO into cannabis stocks. However, if you’re one who looks for the writing on the wall before most catch on (unlike Intel), then this could be it. 

For those who don’t know, we legit live in a wild era these days. 

(Source: Giphy) 

With pronouns being shoved down everyone's throats, gender laws going into effect, and god knows what else politicians are cooking up on Capitol Hill… a little doobie legalization might just be the least of our worries. 

(Source: Giphy) 

Meaning, I’d be legit surprised if mass legalization doesn’t happen soon, resulting in cannabis stocks replaying their record high (pun intended) boom back in 2018. 

(Source: CNBC) 

So given all of this, keep the cannabis sector on your radar going forward. Trump’s mouth (including Kamala’s) will definitely have more to say on the matter as we lead up to the election, and you’re definitely going to want to be in the know when that market buzz really kicks in. 

In the meantime though, stay safe today, and I hope everyone has a wonderful Friday! Until next time friends… 

Stocks.News holds positions in Intel as mentioned in the article.