Sen. Jeff Sessions (R-AL) will become the next U.S. Attorney General, which has left investors asking, "Should I invest in marijuana stocks?"
That's because Sessions is an outspoken critic of marijuana. In an April Senate meeting, Sessions said, "We need grown-ups in charge in Washington to say marijuana is not that kind of thing that ought to be legalized."
He also said in that same meeting "good people don't smoke marijuana."
Currently, marijuana is illegal under federal law. But because of a congressional rule from 2014, the Department of Justice (DoJ) is not allowed to use funds to interfere with the implementation of state cannabis laws.
Also, a recent Aug. 16 court ruling states the DoJ can no longer use money to prosecute medical marijuana businesses where the defendants are following state laws.
That means marijuana legalization is determined by state voters right now.
And marijuana stock investors want to know if it will stay that way...
Donald Trump's Impact on Investing in Marijuana
President-elect Donald Trump's opinion differs from Sessions over marijuana legalization.
On Feb. 12, 2016, on "The O'Reilly Factor," Trump said he was in favor of medical marijuana because of its potential health benefits.
"I have to see what the medical effects are and, by the way - medical marijuana, medical? I'm in favor of it a hundred percent," Trump said.
Trump also said he knows people have serious problems and medical marijuana does help them.
Then in late October, President-elect Trump provided more clarity on where he stands on the issue of states' rights for legalization.
According to The Washington Post, Trump believes it should be left up to the states whether or not they legalize marijuana.
"Marijuana is such a big thing. I think medical should happen - right? Don't we agree? I think so. And then I really believe we should leave it up to the states," Trump said.
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However, we won't know Trump's official marijuana policies until he enters office. And it's still possible Sessions pushes for an anti-marijuana law under the Trump administration.
But there's one big reason investing in marijuana stocks could be profitable even with Sessions as the U.S. Attorney General...
Investing in Marijuana Stocks in 2017
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President-elect Trump ran on the platform that he is a successful businessman.
And as a businessman, he will have a hard time ignoring the massive amount of money states like Colorado are making from marijuana taxes and fees.
In 2015 alone, Colorado collected more than $135 million from fees and taxes. And it uses that money mostly for school construction projects.
And that massive amount of revenue is just the beginning...
California, which approved of legalized recreational marijuana use, could become the best example as to how much money can be made for states from marijuana taxes and fees. Money Morning Director of Tech & Venture Capital Research Michael A. Robinson believes California's economy will boom from legalized marijuana.
"At this point, it's impossible to know the full economic impact, but it's safe to say it will be in the billions," Robinson told me.
Robinson also believes California will be a tipping point for full national legalization.
"Fact is, California stands as one of the world's largest economies, so just the sheer volume of sales in the state would be massive. As we have seen with things like environmental legislation and gay rights, the state is on the cutting edge of major issues that have socioeconomic impacts. Other states will look at California's success in rolling this out as their model for legislation," Robinson said.
And as more states legalize recreational marijuana, the profits will be enormous.
In 2016, legal marijuana sales are expected to reach $6.7 billion. By 2020, sales are expected to climb to $21.8 billion.
That's a 225% increase in just four years.
However, it's true the marijuana industry has its challenges. Investors should take a cautious approach to investing until official marijuana policies and plans are released from the next administration.
And most marijuana stocks aren't listed on major indices because they don't meet the qualifications. Most are listed as penny stocks, and penny stocks are notoriously risky.
But there are marijuana stock companies out there that may fit your investing strategy. That means even with Sessions as U.S. Attorney General, there are marijuana stocks to watch in 2017.
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