High Times Are Here for Cannabis Companies and Investors
Momentum is accelerating.
I can feel it.
And I think we’re rapidly approaching the moment when the dam finally bursts.
2020 was a fantastic year for American cannabis. During the pandemic, sales skyrocketed 46% to $17.5 billion. But more importantly, legalization gained steam.
I stated that no matter who won the White House, cannabis would be the real winner on election night.
And it was. Five states – Arizona, Mississippi, Montana, New Jersey and South Dakota – greenlit new cannabis markets or expanded existing ones.
But from my perspective, that was only the tip of the iceberg. After a roaring 2020, I was certain cannabis was in store for a truly dramatic 2021.
To kick off the year, I forecast that at least six states would expand legalization – Connecticut, Maryland, New Mexico, New York, Rhode Island and Virginia.
And as of April 1, three of those states have already done so.
New York – home to 20 million people – essentially had to legalize adult-use after New Jersey did in November. This is a roughly $1 billion market, and it might be the largest domino to fall.
The pressure is now on for Maryland and Pennsylvania to follow suit – just as New Mexico felt pressured to legalize adult-use after Arizona did on election night.
No one wants to be the odd man out on either coast.
There is a major sea change taking place across the country.
When historically conservative states, like South Dakota and Virginia, vote to legalize, you know views have fundamentally changed. Today, 40% of the U.S. population lives in a state that has fully legalized cannabis.
And I recently said that the possibility of Alabama, Kansas, Kentucky and South Carolina legalizing marijuana to some extent this year is escalating. Already, a South Carolina Senate committee has passed a medical cannabis bill.
But here’s the thing: You don’t need to look any further than Illinois’ March cannabis sales to see why this green revolution will continue to expand from sea to shining sea.
Last month, Illinois’ adult-use sales jumped 35% from February’s to $109 million – a new record.
But of that total, $33 million was from out-of-state customers. This means nearly a third of all recreational sales came from tourists. And that figure is up from $23 million in February.
High times are here for cannabis companies and cannabis investors. So start thinking about establishing positions in cannabis stocks (if you haven’t already)… before federal legalization really takes off.
I’ll be covering this topic a lot – including which stocks I think are poised to take off – in the coming weeks.
Here’s to high returns,
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