What Are the Short and Long Term Shifts For Marijuana Stocks Related To The Coronavirus?
In the past three months, we have witnessed major shifts in the cannabis industry. With so many marijuana stocks fighting for the top spot, it seems as though the coronavirus has caused quite a lot of big changes for the market at large. Many believe that in the near future, we could see some changes in how the government sees the cannabis industry for the next few years. These changes could shift how the market heads into the future given that laws change and the public perspective shifts as well.
As of now, more than half of the U.S. has legalized cannabis in one way or another. In regard to the coronavirus, we have seen that same amount of states choose to deem cannabis an essential service for the present day and for the foreseeable future. This has helped to show the government that the public is in vast support of the legalization of marijuana. But, with so many issues amongst the economy right now, it could be quite a while before we see cannabis become fully legal in the U.S.
What Could Change In The Near Future?
An advocate for the cannabis industry recently stated in regard to coronavirus that “the COVID-19 response has shown just how critical cannabis is to the overall economy and job markets in a number of these states, and it’s very hard for the federal government to ignore that. It’s getting increasingly hard for members of Congress to ignore that fact.” Because of its essential standing, more than ever, the public and the government are recognizing just how important marijuana and the cannabis industry is to daily life in the country.
But, whether or not this makes any short or long term changes remains up in the air. For now, we know that in November there are quite a lot of states that are working to legalize cannabis. These states seem extremely likely to do so and could change how the country overall views the substance. In addition, many marijuana stocks to watch are waiting to potentially capitalize on these shifts as the industry progresses.
What Can We Look Forward To for the Long Term in the Cannabis Industry?
The U.S. cannabis industry is without a doubt one of the most, if not the most prominent in the world. All eyes are set on the country to see what happens in the short and long term. Studies have shown that within the next decade, the cannabis industry could be worth anywhere from $60-200 billion depending on where you look. And whether or not that it is an overstatement, it does seem more than likely that we will witness some type of market growth.
The coronavirus has created a heightened demand for cannabis which has in turn, let to cannabis stock growth. But, with so many pot stocks competing for the top spot, this demand could be limited to the near future. Investors and those who watch the industry should continue to keep a close eye on pot stocks and legalization measures, as they shift the industry more than any other factors.