How the Election Could Prove Beneficial to the Cannabis Industry
As we come closer and closer to election day, investors continue to wonder how marijuana stocks will be affected. When considering this, investors are mostly thinking about U.S. pot stocks. This includes companies like Innovative Industrial Properties Inc. (IIPR Stock Report), Trulieve Cannabis Corp. (TCNNF Stock Report), Harvest Health & Recreation Inc. (HRVSF Stock Report) and more. In addition, Canadian marijuana stocks like Aurora Cannabis Inc. (ACB Stock Report), could also see a big boost from the election. More than just a new president, the election will determine whether or not some states want to legalize cannabis or not. This is a big deal, and could be big news for both wholesale pot stocks and retail marijuana stocks alike.
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On election day, there are several states that are voting on whether or not to legalize marijuana for either medicinal or recreational use. In the past, we have seen the majority of states with this on the ballot, approve the measure. Now, this is in no way a guarantee as to what will happen when November 3rd comes. But, investors should have high expectations for the cannabis industry’s future. In addition, the presidential election will also be a major factor in what happens to marijuana stocks in the future. With all of this in mind, let’s take a look at just how election day could benefit pot stocks.
New Legal Cannabis States Could Provide a Pot Stock Boost
As stated before, on November 3rd, there are several states that could legalize marijuana. In New Jersey, a ballot measure could approve recreational marijuana for the first time in the state’s history. Analysts have shown that there are more than 61% of voters that may approve the ballot come election day. If it is able to pass, studies have shown that the adult-use market there could generate around $400 million in sales during 2021. By 2024, that number could more than double to $950 million. This would push around $63 million in tax revenue into the state’s annual budget. And, with New Jersey being so heavily impacted by the effects of Covid, any influx of capital would be more than welcome.
States like New Jersey could also provide a breeding ground for new marijuana stocks to get in early. As we’ve seen before, leading MSO pot stocks are happy to capitalize on any new markets. DeVaughn Ward, an analyst for the cannabis industry stated that “once New Jersey goes, it’s going to set off an arms race along the East Coast, putting New York, Connecticut and Pennsylvania on the clock.” This is something that we have seen across the U.S. and especially on the West Coast. While the three states above all have medicinal marijuana legalized, adding full rec legalization would be a big deal. New England is one of the most populated areas of the country and could prove to be an extremely essential part of the U.S. cannabis industry.
The U.S. Could Have a Larger Legal Cannabis Industry Than Ever Before
In addition, three more states around the country are also voting on whether or not to legalize cannabis. This includes Arizona, Montana, and South Dakota. Although there are only five states that are voting on the subject, as stated before, it could lead to a big domino effect. If these states all see the measures pass, there would be 38 states in the U.S. with legal cannabis. With so many states having marijuana legalized, marijuana stocks could have a field day in the near future. Of course, it will depend on what type of legislation goes into effect and how pot stocks take advantage of it. But, with a country so heavily affected by Covid, marijuana could be this years saving grace.
The legal cannabis industry provides a great deal of tax revenue to the states that have it. These states have been able to record record growth numbers in jobs and tax revenue. Although most industries have been crushed by Covid, the cannabis industry and marijuana stocks have largely escaped unscathed. Because of this, the federal government may see the benefit of legalizing marijuana. And, with the potential of a new president that supports cannabis decriminalization, the domino effect could be even bigger.
Will November 3rd be a Big Catalyst for Pot Stock Growth?
As election day comes and goes, there is no doubt that it will be a major catalyst for pot stock growth. Although the presidential election has major consequences to the cannabis industry, states legalizing cannabis could be an even bigger deal. This is because adding new states to the cannabis industry has proven to increase the public’s support of greater legalization efforts. With this in mind, the hopes are that things can go according to plan for marijuana stocks as election day fast approaches.
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