Just a few weeks ago, I released my marijuana investing forecast for the year ahead. If you haven't read it, I won't spoil it for you, but it was extremely bullish. And that says quite a lot when you think about the flood tide of legal victories and the nice returns cannabis investing has already brought in the past year.
Now, as I mentioned, some investors and sector-watchers are nervous given attorney general nominee Jeff Sessions' stated views on marijuana. They're not exactly progressive.
What's more, we're seeing legislative "pushback" in some state assemblies where voters just OK'd recreational marijuana use.
But I'm going to fill you in on what's really happening here, and then you'll see why my outlook is even stronger than it was earlier this month…
No One Expected the Marijuana Battle to Be Easy
Look, there's almost 100 years of ferocious downward social and legal pressure keeping pot illegal and the cannabis industry depressed. For generations, people have been told by successive Democratic and Republican administrations that it's simply a dangerous substance for bad people.
There are stiff headwinds, but the truth is, for almost as long, there's been a strong tradition of activism that's been advocating for cannabis.
And it's beginning to win.
American society's views on marijuana – who should use it, how it should be used, and how it ought to be regulated – are changing with blinding speed. More than 60% of U.S. adults now favor legalizing, taxing, and regulating marijuana, be it for recreational use, medicinal purposes, or both.
Just look at the powerful dynamic that's been playing out in the two months or so since the election…
Voters said "yes" to medical and/or recreational marijuana in eight out of nine states on Nov. 8, but some state legislators are dragging their feet on turning those referendums into laws.
Legislators in Maine, Massachusetts, and Arkansas have already passed initiatives to delay pot sales in their states.
For example, in Maine, there is a bill now pending that would push back the deadline to lift its prohibition on recreational marijuana from Jan. 30 of this year to February 2018. The bill, L.D. 88, also would clarify that recreational marijuana will remain illegal for Down-Easters under age 21 and would prohibit the sale of edible marijuana products for recreational purposes until February 2018.
Of course, legal marijuana proponents are pushing back – hard…
Becky DeKeuster – a founder of the largest medical marijuana dispensary company in Maine, Wellness Connection – said the "well-intentioned" bill overturns the will of voters. Moreover, she said the bill would support the black market for marijuana – and would act as a "jobs, revenue, and investment killer."
"Here we have an industry that is ready to create hundreds of small- to medium-sized businesses and thousands of new jobs, an industry that will benefit ancillary businesses, generate revenue and an industry… with deep roots in Maine… that plays to our agricultural and our entrepreneurial strengths," DeKeuster said.
On the national scene, we'll likely see pushback from incoming U.S. Attorney General Jeff Sessions and other forces working against legal cannabis.
About the Author
Michael A. Robinson is a 35-year Silicon Valley veteran and one of the top technology financial analysts working today. He regularly delivers winning trade recommendations to the Members of his monthly tech investing newsletter, Nova-X Report, and small-cap tech service, Radical Technology Profits. In the past two years alone, his subscribers have seen over 100 double- and triple-digit gains from his recommendations.
As a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs and high-profile industry insiders. In fact, he was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon. And he was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
In addition to being a regular guest and panelist on CNBC and Fox Business Network, Michael is also a Pulitzer Prize-nominated writer and reporter. His first book, "Overdrawn: The Bailout of American Savings" warned people about the coming financial collapse - years before "bailout" became a household word.
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