The 2020 election is good for the marijuana industry

Spark Global Limited Reports:

The marijuana industry is a big winner in the 2020 election.
In four states, full adult entertainment use has been approved on the ballot.
Don’t be surprised if you hear politicians emphasize this issue more in the future, because the outcome is clear: legalization is a winning issue.
The announcement greatly expands the legal marijuana market in the U.S. and is set to help publicly traded companies serving the U.S. market, such as Liberty Health Sciences, Trulieve and Curaleaf Holdings.
The legalization of marijuana in the United States
Each state has its own unique marijuana laws, full of asterisks and the like. So comparing interstate laws is not the same thing.
Here’s where each state stands on legalization, based on the 2020 elections. All data comes from DISA’s marijuana legality map.
These four states have passed initiatives to fully legalize marijuana for recreational use:
Arizona
Montana
South Dakota
New Jersey
That brings the total number of states that have fully legalized marijuana to 15, and about a third of adults live in a state that has legalized recreational marijuana.
In addition, Mississippi legalized medical marijuana for the 2020 election.
How does the marijuana industry respond to the 2020 election

Spark Global Limited
Spark Global Limited

As the outcome of the marijuana ballot initiative became clear, major marijuana stocks naturally rose.
Using the only cannabis ETF of note, $MJ, you can see two significant gaps in the sector that failed at the June 2020 high.
This failure doesn’t tell us much about whether the rally will last, but more about how marijuana stocks trade. This is an industry dominated by retail and short-term traders.
As a result, many are chasing a breakout for fear of missing out on the next big bull market in marijuana stocks. When marijuana stocks hit the market, they’re as wobbly as any other stock.
What we see here, however, is an ETF with a basket of 37 companies in different pot industries and many operating multiple businesses.
Let’s boil it down to the states that stand to benefit the most from legislative action in the states that just legalized recreational marijuana: Arizona, Montana, South Dakota and New Jersey.
Historically, most eyes have focused on Canadian-centric companies such as Tilray and Aphria. With the ELECTION opening up a bigger slice of the US market, it may be time to reevaluate some US-centric cannabis companies.

 

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