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Federal legalization of cannabis is inevitable.
Cannabis has been deemed essential in almost every state during the COVID-19 shutdowns – a contradiction that the federal government will not be able to justify for long.
The movement to legalize cannabis got underway in the 1970s, and bottom-up support of the American people has reached its crescendo.
Given the current state of the economy, the cannabis industry has proven to be one of the few sources of growth.
It creates jobs. Cannabis companies continue to heap on revenue month after month. The best cannabis companies continue to expand. And these businesses have proved a vital source of taxes for state and local governments.
Jobs, investment, taxes – these factors are all key to getting the economy back on track.
Not to mention that cannabis legalization goes a long way to restoring social justice, an urgently needed step that has taken center stage in cities across the United States.
And because the federal government has not made cannabis legal – yet – folks like you have a once-in-a-lifetime chance to own shares in those cannabis companies that can make the most of the incredible growth the cannabis industry is expected to have in store.
Buying shares now means you can own these promising companies before the last domino holding this emerging industry back falls – institutional investment…
The Last Domino Is About to Fall
The continued prohibition of cannabis at the federal level has kept institutional ownership out.
Prominent investors like major Wall Street investment banks and brokerage firms have been shut out by their compliance departments. The mutual fund industry that manages $17.7 trillion in assets for retirees, workers, and wealthy executives across the country have been hesitant to step in.
With these players on the sidelines, for now, valuations have been held down. Capital remains tight, and that means you can still get in on the cheap.
The continued federal prohibition gives us yet another reason that the emerging cannabis industry is so unique. Traditional institutional investors that typically invest privately in emerging technologies – and garner most of the value creation as a result – have had to sit on the sidelines.
The result is that, over the last few years, many small cannabis companies had no choice but to go public. They needed capital any way they could get it.
About the Author
Don Yocham is Executive Director for the National Institute of Cannabis Investors (The Institute) and Director of Cannabis Investing Research for Money Map Press. Before starting his role with the Institute, he was the Head of Private Deals for the publication Cannabis Venture Syndicate. From his first foray into the trading pits of Chicago to introducing institutional investors to entirely new markets in the early 2000s, Don has pretty much covered the entire field of investing in his 25-year career. In the depths of the financial crisis, when the typical investor had lost more than half of their money, his portfolios were up.