While some investors believe the federal legalization of marijuana is still a long way off, one of our experts makes the case that this could happen by 2020.
Money Morning Special Situation Strategist Tim Melvin has laid out the reasons why the federal legalization of weed is likely to happen by next year.
Now that the campaigns for the next presidential election are beginning to take shape, there will be a number of issues that will take center stage.
While it may seem that legalizing pot nationwide will be part of the Democratic platform, Melvin makes the case that U.S. President Donald Trump will be the one who will make this revolutionary change.
Here's why and how you can turn it into a profit windfall…
Marijuana Reform Will Be a Political Hot-Button Issue This Year
According to Melvin, it would be silly to keep marijuana as a Schedule I drug alongside substances like cocaine and heroin. There's simply no comparison.
Not only is pot on par with alcohol in many respects, but it also has fewer health side effects than a lifetime of heavy drinking.
And with 10 states already legalizing recreational marijuana, the federal prohibition is simply untenable.
LEGAL WAVE: Barriers to marijuana could be tumbling in Mexico and Thailand, but it's here in the U.S. where legalization could spark a "Green Rush" in certain stocks. Click here to learn about three of them…
While the major Democratic contenders all favor some form of ending the federal pot prohibition, its biggest champion may be its most unlikely. Melvin argues Trump will push for the full legalization of pot once the election heats up next year.
We're coming up on an election year again, and an overwhelming majority (60%) of Americans favor marijuana legalization. With the likely Democratic nominee favoring legalizing marijuana nationally, President Trump might be tempted to cut their support off and end federal restrictions against the plant.
Like him or not, Trump is a master at getting votes when it counts and will be able to rally the millions of voters that want full legalization in the coming year.
In fact, cannabis reform is one of the few issues that now has some bipartisan support. Several bills have already been introduced with support from both sides of the aisle.
It was Republicans that took the lead in adding hemp to the 2018 Farm Bill, which created a massive overnight market for CBD products. This is a sector currently worth roughly $2 billion, but one that is expected to double in just a few years.
That makes right now the perfect time to jump into the industry to catch some of the biggest gains…
It's Impossible to Ignore the Financial Potential of Cannabis
Melvin points out that this country has some specific needs that can be fulfilled by a windfall of new cannabis tax revenue once this approval goes through. This includes a crisis with pensions, exploding populations, and crumbling infrastructure.
States that have already legalized marijuana have been enjoying the financial benefits of these choices to the tune of hundreds of millions of dollars in annual tax revenue. For example, California reported $350 million in taxes collected in its first full year of both medical and recreational legalization.
Once pot is legal on the federal level, prices are going to drop to the point where the black market for marijuana is going to fall apart and disappear. This will certainly help cut down on the criminal element in communities across the United States.
Just as it has in Colorado and California, revenue will skyrocket across the U.S., which will also allow the government to collect more tax dollars.
Anyone can debate the moral side of using cannabis as well as legal sports gaming to balance budgets, but legalization is coming. It's only a matter of when and not if.
And that could mean a massive financial windfall for savvy investors who get in early…