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 one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.