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I'm calling 2:40 p.m. on Nov. 7, 2018, the "Sessions bump."
That's the moment we learned that former U.S. Attorney General Jeff Sessions resigned.
Sessions has long served as Legal Cannabis Enemy No. 1 within the federal government, and this move potentially clears the way for national legalization.
And it served as a big catalyst for pot stocks.
Of course, national legalization is still a half-decade or more away, Sessions or not. At least that's what former Speaker of the House John Boehner says.
At the state level… well, there's another story.
On Tuesday (Nov. 6), Election Day, voters in three states passed legalization ballot initiatives.
In Missouri and Utah, voters made their states the 31st and 32nd to legalize medical marijuana.
And in Michigan, voters decided – with a 55% majority – to legalize adult-use recreational marijuana.
As the state with the second-biggest medical marijuana industry, this new marijuana reform cracks open a huge industry for Michigan. If we use Colorado's industry as a reference point, we're looking at $600 million in sales in the first year.
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But here's the thing: Colorado's population is half the size of Michigan's. With 10 million residents, Michigan is the 10th most populated state in the nation.
Which means Michigan's market is potentially twice as big as Colorado's. There's a good chance it could easily break the $1 billion mark in sales… and that's just in the first year.
Already, Michigan's medical cannabis industry is second to only California's. In May 2018, Michigan had about 269,553 medical cannabis patients – and that was six months ago. They raked in $633 million in sales in 2017, outselling the other 30 medical-only cannabis states.
North Dakota, on the other hand, disappointed on Election Day by rejecting its proposed marijuana reform, which would have legalized recreational marijuana for adult use.
The thing is, the state's tiny population is conservative, and its ballot initiative was needlessly permissive. Under the measure, there would be no limits on the amount of cannabis people could possess or grow, and had no rules whatsoever outlining legal sales.
Expect to see another – more sensible – bill in North Dakota in the future.
The big thing we're celebrating with this election is the end of the liberal states' monopoly on cannabis legalization. Typically red states like Missouri and Utah are embracing legalization, and we can expect others to follow their lead.
A nationwide push seems practically inevitable at this point.
When laws pass… stocks soar.
And federal legalization would be an awfully big law.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.