Since the elections in early November, marijuana stocks and marijuana ETFs have been moving higher at a healthy clip. Now may be a perfect time for investors who have been waiting to get into this industry but didn’t want to be too early.
The moves come after four States passed the legalization of recreational marijuana use, which now brings the total number of US States to 15 that allow citizens to consume marijuana in essentially the same manner that someone’s consumers alcohol.
Furthermore, 2 more States passed laws allowing marijuana to be used for medical purposes. Now the US has 35 States that allow medical marijuana usage.
Another catalyst is that with Vice President Joe Biden winning the White House, many believe the push for national level decriminalization of marijuana is more likely to occur. This is even though the Republicans still control the Senate.
Finally, as I have mentioned before, with the pandemic and massive budget deficits occurring all around the country, State and local governments, and even perhaps the Federal government may start looking at alternative ways to increase tax revenue. One easy avenue is to allow marijuana use and place a hefty tax on it, as the government already does with alcohol and tobacco sales. As things currently sit in most States, those that have not passed the legalization of recreational use would argue that marijuana is being sold; it’s just not being taxed. Most politicians would probably agree with that to some extent, and some would undoubtedly love to get some more tax money, especially during times like these. Continue reading "Marijuana ETFs are Moving"