During the last month, we have seen a substantial increase in interest in cannabis companies that are levered to the US and stock prices have been trending to the upside.
We attribute the increase in interest as a response to a series of prominent polls showing that Democratic Presidential Candidate Joe Biden is leading Donald Trump by a wide margin. From social justice issues to the handling of the COVID outbreak, President Trump has had a challenging few weeks and voters seem to favor a Biden presidency.
Many cannabis activists and analysts expect a Joe Biden presidency to result in the decriminalization and the rescheduling of cannabis. Earlier this year, he said that he would be supportive of states’ rights as it relates to recreational cannabis and the market seems to be favorable on his stance.
If Joe Biden wins the election and makes these changes, it will make the operation of a cannabis business much easier as it relates to banks, insurance, and taxes. The US desperately needs to find new revenue streams after it printed trillions of dollars to combat COVID and states’ budgets are stretched the limit.
States that have legalized some form of cannabis have benefited from the tax dollars that have come in from the industry. States that do not have a legal cannabis program are looking at states like Michigan or Colorado which have been generating a substantial amount of tax revenue to better understand how they can emulate the success in these markets.
We believe that COVID will accelerate the cannabis legalization process and remain bullish on this vertical of the sector over the short and long-term. Companies like Jushi Holdings Inc. (JUSH.CN) (JUSHF) are expected to be major beneficiaries of a Joe Biden presidency and this is a trend that our readers need to be aware of.