Last week, White House Press Secretary Sean Spicer indicated the government may "step up" efforts to enforce federal marijuana laws, in direct opposition to several states, such as Colorado and California, that have legalized cannabis for recreational use. And this week, Attorney General Jeff Sessions did anything but walk those comments back when he said "it remains a violation of federal law to distribute marijuana… whether a state legalizes it or not."
Spicer and Sessions' ominous statements galvanized cannabis industry players, insiders, and activists, even as they sent marijuana stocks into a "Trump slump" of their own.
Now, I've recommended my Nova-X Report readers who've been playing the stocks in our weed investors' "bible," The Roadmap to Marijuana Millions, treat this downturn as a chance to use my "Cowboy Split" strategy to add to positions that have already paid triple-digit gains.
But I completely understand why regular investors playing this lucrative trend might be nervous.
So let me tell you why I'm not nervous at all. It has to do with a powerful, unlikely "Red-Blue" coalition that isn't going to take any renewed assault on legal pot lying down.
But more than that, it has to do with unstoppable momentum…
Rare Washington Cooperation on a Bipartisan Issue
I like to call these folks the "Four Horsemen" of cannabis prohibition. Representatives Earl Blumenauer (D-OR), Jared Polis (D-CO), Dana Rohrabacher (R-CA), and Don Young (R-AK) have launched the Congressional Cannabis Caucus.
Playing on the strength of marijuana initiatives at the ballot box on Election Day, the bipartisan quartet in the House of Representatives decided not to wait out demographic changes, slowly fading opposition from older lawmakers, or any potential problem initiatives that could arise from the Trump administration.
The caucus – the first of its kind – aims to protect state-level gains made in recent years and bolster support for reform of antiquated federal laws. Their endgame: removing marijuana from the Drug Enforcement Administration's (DEA) list of Schedule I drugs, which also includes cocaine and heroin.
The newly organized effort to fight off holdout marijuana opponents at the federal level is positive news for the entire industry – including the Nova-X Report's "ecosystem" of 30 stocks.
And you'd better believe these congressmen mean business…
The Cannabis Caucus Is Leaving Nothing to Chance
The Congressional Cannabis Caucus made a splash on the issue a week before the administration could, thus shaping the issue. Importantly, Republicans are helping spearhead the caucus. With a majority in the House and Senate, support from GOP lawmakers is essential to any pro-cannabis congressional effort.
Sessions, a former Republican senator, has long been an outspoken critic of marijuana, and his statements during confirmation hearings and since have been vague at best on the topic. But Trump ran on a heavily pro-business platform. As such, he'd have a hard time ignoring the massive amount of (taxable) money legal marijuana companies are making.
Yet the first official statement on marijuana legalization post-inauguration was a mixed bag – highly supportive of medical marijuana, not so with recreational.
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.