Keep an eye on cannabis stocks.
The sector could see higher highs on a push for federal legalization.
With Senate Majority Leader Chuck Schumer pushing for legalization, and Supreme Court Justice Clarence Thomas saying national prohibition is unnecessary, the U.S. may be nearing a turning point. Helping, later today, Schumer, Cory Booker and Finance Committee Chairman Ron Wyden will unveil the Cannabis Administration and Opportunity Act.
According to Bloomberg, the bill “is expected to remove marijuana from the federal list of controlled substances. The bill would also tax and regulate marijuana on the federal level, while leaving states able to enforce their own laws regarding the drug.”
Helping, “Two-thirds of Americans say the use of marijuana should be legal, reflecting a steady increase over the past decade. The share of U.S. adults who oppose legalization has fallen from 52% in 2010 to 32% today,” says Pew Research.
In addition, Jefferies’ analyst Owen Bennett says cannabis stocks are a “generational wealth opportunity,” says Barron’s. He also launched coverage with buy ratings on Curaleaf (CURLF), Green Thumb Industries (GTBIF), Trulieve Cannabis (TCNNF), Cresco Labs (CRLBF), Columbia Care (CCHWF), TerrAscend (TRSSF), and Ayr Wellness (AYRWF).
Other top stocks to watch include Canopy Growth (CGC), Tilray (TLRY), Aurora Cannabis (ACB), HEXO Corp. (HEXO), and ETFs, such as the Advisor Shares Pure Cannabis ETF (YOLO).