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.
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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