Thanks for pressing on the thumbnail – you are back to JayJay Finances where we generally talk about stock updates, stock markets and personal finances! Since last week, after Wednesday’s vice presidential debate, marijuana stocks are on a tear — and that’s no coincidence.
On Thursday and Friday, shares of Canopy Growth — already the biggest marijuana stock on the block at a .6 billion market cap — were up. In mid-trading Friday, Canopy stock gained 2.4%. Smaller players including Hexo Corp, Curaleaf and Charlotte’s Web were rising as well, up 2.3%, 9.1%, and 9.5%, respectively.
Notably, not all of the “marijuana stocks” named above are actually engaged primarily in the sale of marijuana, per se. Charlotte’s Web, for example, focuses on producing “hemp-based cannabidiol wellness products.” But positive sentiment seems to be lifting the entire sector today.
In the course of the debate, Sen. Kamala Harris promised that upon winning the 2020 election, she and Democratic running mate Joe Biden “will decriminalize marijuana, and we will expunge the records of those who have been convicted of marijuana.” It was the only time marijuana was mentioned in the debate — and the subject didn’t come up once in the previous week’s presidential debate — but even so, it appears to have been enough to spark a rally in marijuana stocks that’s continued to happen on Friday. How it is expected to be next week, huh?
All of these announcements, definitely and certainly sounds like it should be good news for cannabis companies. Although it’s true that many states have already legalized the use of cannabis for medical and/or recreational use, and hemp-derived products are widely available for sale in the U.S., the federal laws have not been changed. For that reason, banks fear prosecution and are largely unwilling to work with companies in the cannabis industry or finance marijuana-related ventures — hobbling growth in the industry.
Legalizing marijuana at the federal level would logically be a boon to the industry for this reason, just as expunging criminal records would remove some of the stigma from the product, encouraging its use and sale — which is why marijuana stocks were rising last week.
So, guys, what do you think – what can be actually expected next week? Shall we invest into marijuana stocks? Share your thoughts below in the comment section.
Thanks guys for watching, please give this video like and subscribe, as it really means a world to me!
Take care, people! Enjoy your day!