U.S. Attorney General Jeff Sessions just rescinded an Obama-era policy that protects states with legal marijuana laws from federal interference.
We're not surprised.
Sessions is a longtime, staunch opponent of marijuana, who once claimed, "good people don't smoke marijuana" while warning a Senate panel about the "dangers" of the "gateway drug."
Now it seems as if Jeff Sessions is trying yet another tactic to enforce his views of cannabis on U.S. states in the aftermath of California's recent move to total legalization.
As of this morning, Sessions nixed the "Cole Memo," which is essentially a policy of non-interference by the federal government with marijuana-friendly state laws.
Even though the memo will be rescinded, it's not immediately clear whether Sessions will issue new guidance in its place or simply revert back to older policies that left states uncertain about enforcement of federal law.
Industry experts and marijuana enthusiasts alike are concerned about what this decision (if enacted) could mean for the budding marijuana industry. Marijuana investors across the board have become skittish on the news of Sessions' announcement.
But they don't need to worry – and neither do you. This is just a last-ditch effort from Sessions to regain some authority with his supporters.
The legal marijuana industry will carry on and continue to be profitable for years to come. Here's why…
States Want (and Need) Legal Marijuana
Revenue collected from legal marijuana is the primary reason why 29-plus states have legalized.
In fact, "The discovered revenue from regulated legal cannabis markets can be a lifesaver to local law enforcement, substance abuse counseling, and other social services," said legal cannabis consultant Leslie Bocskor to Forbes on April 11, 2017.
For example, Colorado put $16 million toward affordable housing grants and loans in 2016 from cannabis tax collections.
Extra cash for things like infrastructure projects and schools is just a glimpse at what legal marijuana tax revenue could do for state economies. Marijuana legalization is even being touted as a solution for states suffering from pension crises, like Kentucky.
Revenue aside, states are also fed up with the high costs of prosecuting those who have been charged with marijuana crimes.
Related: Marijuana Growers and States Are Teaming Up to Fight This Common Enemy
New Jersey Gov. Phil Murphy campaigned on this very issue – and won.
"The fact of the matter is that New Jersey has the widest white/non-white gap of persons incarcerated in America…the biggest contributing factor is our low-end drug crimes," said Murphy in his final debate, on Oct. 18 of last year.
"[I want to] legalize marijuana so police can focus resources on violent crime," claims Murphy on his website.
He has vowed to completely legalize cannabis within his first 100 days in office.
America Has Spoken for Legal Marijuana
Public opinion of legal marijuana is rapidly improving.
In fact, Gallup's most recent poll showed a record-high percentage of Americans now support legalizing marijuana: over 64%.
This marks the highest level of public support in history since the contentious topic was first measured nearly five decades ago. In 1969, only 12% of Americans surveyed were in favor of legalization. Now, that number has quintupled.
But here's the most critical finding…
While most Americans have consistently supported legal marijuana since 2013, this is the first time that Gallup has recorded a majority in Republican support for legalization. 51% percent of Republicans told Gallup that marijuana should be legal, up from 42% last year.
Top Three California Pot Stocks to Watch for the Biggest Gains – Learn How to Cash In Here
What's more, Republican support is accelerating. Legal marijuana support from Republicans grew 21% between 2004 and 2016, but leapt 9% just this year.
Even Republican legislators are publicly showing their support…
"I know that medical marijuana can do some things that other medicines can't. I'm for alleviating pain and helping people with illness," said Sen. Orrin Hatch (R-UT) to Rolling Stone in September.
Jeff Sessions Is More Bark Than Bite
Jeff Sessions has a multitude of hurdles to jump through if he really wants to change the way America deals with legal pot, and it's highly unlikely that any of his "actions" will cause the marijuana industry's success to reverse course.
A federal attack on legal marijuana at this stage is simply unfeasible. The Justice Department lacks both the training and the resources to crackdown on legal marijuana in each of the over 29 states that have legalized.
Moreover, scaling up for a war on marijuana businesses would no doubt be unpopular with Sessions' key supporters.
There are many campaign promises the Trump administration will realistically need to address long before marijuana – notably, immigration – and marijuana enforcement is nowhere near the top of the wish list for the vast majority of Republicans.
As the market writhes in unnecessary panic, now is the perfect buying opportunity for investors.
In fact, if you're considering buying pot stocks for the first time, today's events have created an attractive entry point into the industry.
And we've made it easy for you to get started…
In this interview, Money Morning Director of Technology & Venture Capital Research – and marijuana stock expert – Michael Robinson shares details on three tiny pot stocks set to explode following California’s Jan. 1 marijuana legislation.
I'm finding that many of the canabis recommendations in yur newsletter are not listed with the investment company I'm using. Any suggestions to get the full advantage of the trades?
Why would I invest in USA companies with this uncertainty when Canada has zero issues and will be fully legal in 5-6 months? Seems wise to go N. for awhile
until this State TRUMPED by Federal Law is settled & then jump S of the border-& there is NO WALL-YET!:)
Federal law is higher than state law. Pot is still illegal under fed law. The state's should have never been allowed to make pot legal in the first place. I personally hope the feds come down hard on pot use. Finally this pos administration is doing something I'm happy about.
read up on all the good its doing to people who need it. just be lucky your not the one with cancer, or parkinson's,or care for a child with seizures, one fool who has the cover their eyes. by they way my pot stocks are soaring.
History has shown voices that try to deny the future just fade away. What's that? I cant hear you…
You are missing the benefits of the weed plant as far as medicine goes if you oppose it. Some day you will need the extract in your own life so don't condemn it before you understand it. Also I believe that Jeff Sessions is going to crack down on the "black" market not those legally operating in the states that got approval. The gangsters are still competing with the licensed growers. That needs to be cleaned up as their product is full of pesticides and is grown outside and exposed to all types of things. Jeff Sessions are after these guys……not the ones in states who are following State laws. Just my take on this!
You do know that Reefer Madness was not a true depiction of the effects of marijuana? You realize the states are making money from this that the Feds would never be able to afford to subsidize? Do you realize that the national debt would be a thing of the past if the Feds legalized and got their share of the taxes? This is similar to alcohol and prohibition, except pot is safer than alcohol.
loser comment
It is perfectly obvious the U.S. Federal Government is unhappy if it is not getting its "cut". Everything will be just fine once Uncle Sam is being paid his "share".
Pot destroys the work force. Users are dangerous on the job . Their job attendance is not reliable (and for good workers that may be preferred to working with them). It increases birth defects and social economic problems. Most in prison are there off of stupid things they do while high. Marijuana is currently the major reason. The states that have legalized it are following a self-destructive path. Businesses are well advised to move out of their jurisdiction. Besides the insurance and poor worker problems, the health and criminal problems will soon force higher taxes.
The information contained here makes it sound like the action taken by AG Sessions is no big deal. However on the morning that Sessions announced he was rescinding The Cole Letter, I lost over $8,000 before noon on my Marijuana stocks. I vacated the market on all my Marijuana stocks and in doing so, saved an additional $,3000 because the pot stock continued to tank during the day.
In your opinion, what should I do?…get back in the market? look for over opportunities outside the pot industry? …what?