Earlier this year, I released my 2017 "pot stock" forecast. You can access it here, but the bottom line is this forecast was as bullish and enthusiastic for cannabis investing as you can get. And recent gains in pot stocks (like those I recommended for my Nova-X Report readers in the Roadmap to Marijuana Millions "basket" of stocks) prove my optimism was well-founded.
But the "$64,000 question" was whether the new administration would continue the hands-off approach to states' legalization... or whether we could see some kind of draconian crackdown that would see thousands imprisoned and millions in pot stock profits go up in smoke.
Well, we just got the loudest, clearest signal yet of exactly how this is going to go...
America's Top Cop Is a Real Marijuana "Flat-Earther"
During the election campaign, Trump the candidate indicated he was in favor of medical marijuana and letting the states' "laboratories of democracy" take whatever approach they saw fit to meet their needs.
Then Trump and the cannabis sector went on to have a pretty "yuge" Election Night on Nov. 8. Trump won the White House, of course, and voters in eight states opted to take marijuana 100% legal and above-board, bringing to 30 the number of states (including D.C.) in the Union with some kind of legal weed provisions.
But then Trump won the White House and nominated then Sen. Jeff Sessions for the post of attorney general...
This sent pot stocks, some of which can be volatile, reeling this February. I recommended sitting tight and buying more of the best cannabis shares, but I admit it was easy to see why investors panicked.
Jeff Sessions isn't what you'd call "forward thinking" on the subject of legal recreational or even medical marijuana. In other words, he's a staunch prohibitionist cut from old-school "Drug Warrior" cloth.
Here are some of the nicer things he's said about it recently:
..."I'm definitely not a fan of expanded use of marijuana."
..."Good people don't smoke marijuana."
..."We need grown-ups in charge in Washington to say marijuana is not the kind of thing that ought to be legalized, that it is in fact, a very real danger."
That tells investors everything they need to know about Sessions' perspective on this booming investment niche.
During his confirmation hearings, however, Sessions played his cards close to the vest; he didn't commit to vigorous prosecution of federal pot violations, but then again, he didn't exactly say he would look the other way, either.
So the uncertainty about the future of weed investing is still very much a factor.
But a recent development in Washington means Sessions might just be out of maneuvering room... especially if he's planning a big Justice Department enforcement push of the type marijuana investors and activists have long feared.
Congress Put a Little Something "Extra" in This Budget for Pot Stocks
Trump recently signed a bipartisan $1.1 trillion omnibus budget to keep the government funded through September of this year.
At the time, the news was all about avoiding an ugly government shutdown of the type we last saw in 2013, when stocks took a double-digit hit, most federal workers were idled, famous landmarks shut, and most official business halted.
The budget bill will avoid all this, of course, kicking the can down the road at least until this autumn.
But lawmakers slipped a little something more into this bill - additional fuel to catalyze an entirely new round of gains for weed stocks.
It's an extension to an obscure law from the Obama era, when states - the "laboratories of democracy" - really began to experiment with and embrace legislation to legalize marijuana, both medicinal, and later, recreational weed, too.
It's called the Rohrabacher-Farr Amendment, and it's an all-too-rare piece of bipartisan legislation that actually bars the Justice Department from receiving or using any funds to go after duly (state) licensed medical marijuana operations out in those states where weed is legal.
The bottom line is, Jeff Sessions looks like he's just about out of options (or, more to the point, out of money) if he wants to use the full weight of the Justice Department to crack down and interfere with legal marijuana right now.
Congress is working on making Rohrabacher-Farr permanent and even more comprehensive. Its only one of several major ongoing initiatives underway all over the federal and state levels of government that could see even more gains for legal cannabis - and more profits for folks investing in it.
Next Monday, May 15, at 6:00 p.m. sharp, I'm hosting an online "weed investors' summit." You can bet we're going to be talking about Jeff Sessions' next possible move. What's more, I'll be breaking down the most significant developments for weed investors taking place right now in all 50 states - plus a few watershed events beyond our borders that promise to generate some big gains in these must-have stocks. I'll be giving details on a handful of pot stocks that could zoom by 1,000% or more. Money Morning Members are going to get first dibs on "seats" in the conference, too. Keep an eye on your inbox in the next day or two for your invitation.
Follow Michael Robinson on Facebook and Twitter.
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About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- 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.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he 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 the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.