It may be one of the most controversial topics at the moment.
However, cannabis could also be one of the most profitable.
Related stocks have already exploded on news of Canadian legalization, U.S. states approving its medicinal or recreational use, and corporate America interest. The U.S. FDA approved the very first cannabis-derived drug, as well as the 2018 Farm Bill, which legalized hemp and hemp-based CBD. Even major retailers are jumping on board.
DSW for example, has been running tests in its stores with CBD, announcing plans to expand such products to nearly 100 stores. Neiman Marcus is pushing ahead with CBD sales at some of its stores and online. Simon Property Group is partnering with Green Growth Brands.
Better, Cowen analysts say U.S. cannabis sales could reach $80 billion in the next 11 years. Analysts at Piper Jaffray say the market could be worth as much as $50 billion a year in the U.S.
Up to 66% of Americans Want Cannabis Legalized
On Tuesday, three surveys found that Americans are increasingly in favor of cannabis legalization. In fact, according to The General Social Survey conducted by NORC at the University of Chicago, 61% of those surveyed support legalization.
That’s up from 57% in 2016 and from 31% in 2000.
A Gallup survey found that 66% of Americans are in favor of legalization. That’s up from just 60% in 2016 and 31% in 2000. A Pew survey found that 62% of Americans want to see cannabis legalization in the country, as compared to just 57% in 2015 and 31% in 2000.
Many in the industry are confident that a change in public sentiment will help persuade lawmakers to drop the current federal ban, which shows cannabis as a Schedule 1 drug.
Congress is Taking Cannabis Legislation Seriously
Known as the Strengthening the Tenth Amendment Through Entrusting States, STATES could amend the Controlled Substance Act to limit federal interference in state matters such as this.
It would give each state the decision on cannabis.
In addition, part of President Donald Trump’s 2019 budget proposes pulling back restrictive language that has kept Washington D.C. from legalizing and regulating the sale of recreational cannabis. At the moment, he’s asking for the public to submit comments to help change the U.S. position on a potential reclassification. Potential legalization could fire up the voter base, considering that 61% of Americans are in favor of legalization.
In conclusion, it doesn’t matter how controversial the cannabis topic may be, it could also be one of the most profitable stories of the year.