Keep an eye on cannabis stocks.
Weeks after Mexico legalized cannabis, the U.S. may be next.
Not only is Senate Majority Leader Chuck Schumer pushing for legalization, Supreme Court Justice Clarence Thomas says U.S. prohibition is unnecessary.
Helping, about 92% of Americans are supportive of legalization, too.
In fact, according to Pew Research, “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.”
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).
“Bennett thinks U.S. industry annual retail sales of $17.2 billion in 2020 will reach $36 billion by 2025, and $64 billion by 2030. He thinks growth will be driven by conversion from the illicit market to the legal market, the increasing normalization of cannabis use, and the disruption of the alcohol and pharmaceuticals industries. He assumes national penetration can hit 30%, with annual spending per user at $1,750—compared to Colorado at $2,683 and alcohol at $1,378. Such assumptions equate to a market of $172 billion,” added Barron’s.
In addition to the cannabis stocks mentioned above, the news could open a world of opportunity for Canopy Growth (CGC), Tilray (TLRY), Aurora Cannabis (ACB), HEXO Corp. (HEXO), and ETFs, such as the Advisor Shares Pure Cannabis ETF (YOLO).