Recreational Marijuana Should Be Legal in Canada and Many Parts of the U.S. in 2017
It’s no longer a question of if. We even have an idea of roughly when this will happen. Legal marijuana is coming to Canada in early 2017. It will likely happen in spring, just in time for Toronto Maple Leaf fans to enjoy hallucinations of their team winning the Stanley Cup. Indeed, the Canadian government has made it clear that it is planning on legalizing marijuana.
Tune into John Denver’s “Rocky Mountain High” because marijuana stocks are about to hit the “big time.” Those who have supported the legalization of marijuana in Canada and the United States are about to be vindicated.
Advertisement
In Canada, the current government could launch a bill, legalizing recreational sale and use of marijuana, in the spring of 2017 – m’kay? In the United States, despite the potential for the forthcoming Trump administration to adopt a more conservative program, ultimate jurisdiction on marijuana law depends on individual states.
Voters in California, Nevada, and Massachusetts have approved the legalization of marijuana for recreational consumption. In Florida, citizens voted in favor of marijuana for medical purposes. But it’s not clear when that legislation will come into practical effect. Certainly, the idea of legalized marijuana has hit the mainstream and nearly 60% of Americans (and a similar number of Canadians) support legalization. (Source: “Support for Legal Marijuana Use Up to 60% in U.S.”, Gallup, October 19, 2016).
Even better, most of those who support legalization aren’t even consumers. (Source: “The Marijuana Politics Guide to 2016 Marijuana Legalization Initiatives,” Marijuana Politics, December 18, 2015.)
Is It Safe to Invest in Pot Stocks?
The big question is whether it’s the right time to invest. Following the Warren Buffett rule of investing in what you know, Cheech and Chong might consider it. But should you, or anyone who couldn’t care less about consuming marijuana, fall for its investment proposition? Despite the promise of green valleys and strawberry fields, many questions remain about what the legalization of pot means in Canada and the United States.
There are still political risks at this early stage. The resulting market uncertainty translates to risk and volatility in election periods. That’s when one candidate or another can point to the benefits— or problems—of marijuana. A few years of testing or experimenting will be necessary before responsible investment advisors can recommend marijuana stocks as safe from going up in smoke.
