You never can tell what will happen in the stock market. After doing a live video about crashing cannabis prices earlier today, Rich returns with a second video as cannabis stocks start suddenly turning around.
Yesterday the Canadian Marijuana Index fell from $48.24 to $46.46, and when the market opened today, it fell even further to $44.50. Since then, however, it has shot back up to $47.52, nearly undoing all of the damage of the last 48 hours. The American Marijuana Index saw similar growth today, rising from $79.90 at today’s opening and sitting now at $83.94.
Rich says that a major factor in this rebound for cannabis stocks has to do with an article recently posted to Market Watch. So, without further ado, let’s jump right into the news.
Report Finds Americans Favor Decriminalizing All Drugs
A report from the Cato Institute, a libertarian think tank, has found that a majority of Americans are in favor of decriminalizing illicit drugs. As part of the report, 1,700 adult-aged Americans were polled over the phone, and 55% ultimately responded that they want drug offenses to be treated as civil infractions and to carry no jail time.
The report also found that a majority of both men and women favor drug decriminalization and that Democrats and Independents also support a drug law overhaul, while Republicans remain mostly opposed.
The results indicate that American attitudes towards drugs have increasingly moved away from considering it criminal matter and towards thinking of it as a health matter.
According to Market Watch, this report was the primary catalyst for the upturn in cannabis stock prices today. It’s worth noting that the broader markets were all showing losses today amidst recession worries and news of a $7.5 billion tariff that President Trump is instituting on European goods.
In contrast, the Horizons Marijuana Life Sciences ETF grew 1.6%, as 24 of its constituent stocks began trading higher.
Some of the biggest cannabis stocks were showing green today, such as Canopy Growth Corporation (TSX:WEED) (NYSE:CGC), which rose 2.4%. Cronos Group (TSX:CRON) (NASDAQ:CRON) grew 2%, as did Tilray Inc. (NASDAQ:TLRY).
Of the big companies, Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) saw the most growth, with 3.9%.
Cannabis Stocks Have a Lot to Look Forward To
The report from the Cato Institute comes hot on the heels of the passage of the SAFE Banking Act through the House of Representatives. That Act, if it is also approved by the Senate and is signed into effect by the President, will allow financial institutions in the United States to offer banking services to cannabis companies.
The Act is a major step towards the regulation of the American cannabis market, and the report today is further proof that cannabis legalization in the US seems like an inevitability.
In Canada, investors in cannabis stocks also have “legalization 2.0” to look forward to. This is the date in December when ingestable pot products will legally be allowed to hit shelves across the country.
If you want to get ahead of other investors in the industry, make sure to check out Rich’s top ten pot stocks for October 2019. Also, if you’ve got any cannabis stocks you’d like to see Rich investigate, let us know about them in the comments below.
Featured image: DepositPhotos © Petrovich99