Every good investor keeps their eyes and ears open for any trends or events that could affect their investment interests in the future. If you’re into pot stocks, it’s okay to be concerned about the industry outlook by the close of 2019 through 2020. A proper analysis of prevailing conditions and key catalysts of growth or decline of the sector would help you make strategic investments albeit for the short-term. So, where will pot stocks be one year from now? Let’s find out what the experts are saying.
According to Profit Confidential, 2019 through 2020 could be the period when pot companies will experience real growth, especially with worldwide legalization of marijuana. The Bank of America Merrill Lynch’s expresses similar sentiments but cautions that while the general trend of the stocks may be bullish some individual firms could experience price dips. This is due to localized constraints such as depressed capital and underdeveloped supply chain facing the Canadian market.
Major catalysts that will keep pot stocks soaring
The U.S. 2020 Presidential Elections
Writing for Profit Confidential Stephen Karmazyn observes that of past marijuana stocks victories, none is more important than the growing political movement mounting behind marijuana legalization in the United States. In fact, 12 sitting governors ran pro-cannabis campaigns. Opposing marijuana legalization could amount to political suicide, especially with two-thirds of adult Americans in its favor. In fact, all candidates eyeing the Democratic Party presidential ticket have publicly supported marijuana legalization.
Karmazyn further states that the move by the Democratic Party to support the legalization of marijuana is historic. This means that a Democratic win is a good as a go to legalize weed in the U.S.
On the other hand, President Donald Trump is not completely opposed to pot legalization either. According to the Investorplace.com, over 53% of Republicans have shown support for cannabis legalization. This means that even if Democrats fail to win the elections, there is a big chance that bills seeking to legalize weed in the U.S. could pass the Congress vote.
Possible Decriminalization of Cannabis
With all signs showing a convergence of wills of the elite political class to legalize pot, the next huddle is for Drug Enforcement Administration (DEA) to declassify cannabis as a schedule 1 drug, according to Karmazyn. Such a move can see marijuana classified under schedule 5, which means that its legal extracts can be sold freely.
Some of the benefits that the sector will reap from such developments include easy access to credit, as more banks will be willing to lend to pot firms. Moreover, more universities and research centers will engage in marijuana testing which is likely to lead to innovations and development of new products. This big break will take the pot stocks to a new level.
Global Interest in Cannabis
The medical benefits of marijuana have caught the attention of the world. It is therefore not surprising to see global cannabis conferences being planned in various parts of the world. These summits bring together top scientist, policy makers, politicians, investors, and top pharmaceutical companies.
Some of the key areas of focus in these conferences include best practices in legislating legal marijuana, exploring lost cost production, and emerging markets in Europe, South America, Africa, and Australia. As more people attend these conferences, their outcomes will help accelerate the legalization of marijuana across the globe. This will mean increased fortunes for cannabis stocks in the coming years.
