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It's not surprising to see big moves for stocks in emerging industries. Cannabis stocks are no exception, and we saw big moves all summer, especially after each company announced advancements in its commercialization.
But the biggest moves may be sparked by our elected representatives in Washington, D.C.
It's easy to see the cannabis wave coming. Week after week, we see policy and attitude changes on the state and local level. And its champions come from both sides of the aisle.
Money Morning Director of Cannabis Investing Research Greg Miller pointed out that when the United States finally moves to full legalization, the cannabis market will explode and create countless cannabis millionaires. It will become the most lucrative market in the world.
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What's most perplexing is that even now, some of the biggest and best-funded companies in the world don't do much – or any – business here, even in states that legalized cannabis. You would think that they'd be setting up shop and preparing for the day when the floodgates finally open.
The problem is that the U.S. government gives mixed messages.
For example, a U.S. Customs and Border Protection official said in an interview that the agency was considering a visa ban on cannabis industry workers or major investors from Canada.
What savvy executive would commit resources here when the government practically said it would restrict them?
But at the same time, the House of Representatives Judicial Committee passed the Medical Cannabis Research Act. If enacted into law, it would force Attorney General Jeff Sessions to authorize two research cannabis growers within one year of passage. At least three more would be required in each subsequent year.
If we dig down just a little deeper, we will see that this bipartisan bill was led by Republican Representative Matt Gaetz (R-FL), marking the first time a committee controlled by the Right voted in favor of any cannabis-friendly laws.
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And before that, both chambers of Congress passed Senate Majority Leader Mitch McConnell's (R-KY) Hemp Farming Act of 2018.
Hemp was a cash crop in this country for most of its existence. In 1850, there were at about 8,400 hemp plantations of at least 2000 acres, according to Hemp.com. However, when Congress passed the Marijuana Tax Act in 1937, it marked the beginning of the end of a crop that was cultivated worldwide for literally millennia.
That is, until the legal cannabis wave started to reach our shores.
And last week, the U.S. Drug Enforcement Administration (DEA) made a major announcement for the future of cannabis in the United States. And it will have major ramifications for marijuana stocks…