Uncle Sam Could Soon Give Cannabis Stocks a Huge Boost
Sweeping legal reform for cannabis is currently being debated at the highest levels of government. The outcome could mean big profits for savvy investors.
It’s been a rough month for cannabis stocks after a big run up to start the year.
Most cannabis stocks got a huge boost to start the year as hope ran high that sweeping cannabis legislation would be pursued quickly by Congress.
But cannabis investors have been stuck playing a waiting game for months now – and cannabis stocks have been falling since mid-February.
But a major development this week could finally be breaking cannabis reform out of the holding pattern.
And at their current prices, a number of cannabis stocks could be great buys – including my favorite name in the space.
Where’s the money?
On Monday, the House of Representatives passed the Safe Banking Act with 321 votes for to 101 against.
The bill now moves on to face a vote in the Senate. If passed, it would allow banks in the U.S. to do business with legitimate cannabis businesses.
To this point, cannabis companies have been had trouble finding banks willing to hold their funds or lend money for fear of reprisal from federal authorities. Cannabis remains a banned substance under federal law, but states have widely been allowed to decide how to legislate cannabis.
But the passing of this bill would remove the conflict for banks that are otherwise eager to jump into the surging industry.
The passing of the SAFE Act would clear a major hurdle for the cannabis industry, with the expectation that a bill to decriminalize cannabis on a federal level will be introduced at some point this year.
While we’re still unsure if the bill will meet resistance in the Senate, but I like putting some speculative money to work in the cannabis industry, even if the bill doesn’t pass this time around.
How do I get some?
Cannabis investors continue to hold their breath as they wait for the vote from Senate.
But even if the bill gets voted down, I still believe in the cannabis industry for the long-term.
There will always be news about cannabis – good and bad. But this just like cryptos, this isn’t a short-term play, but a longer one.
Change is coming, sometimes slowly, for cannabis. Recent polling shows a record high 68% of Americans now approve of legal cannabis – which is more than double the approval level in the year 2000.
So the volatility will stay until full legalization is reached, but I like Tilray, Inc. (TLRY) for a long term play the best. They’ve already agreed to a merger with cannabis giant Aphria Inc. (APHA), pending a shareholder vote.
The acquisition would instantly make Tilray the world’s largest cannabis company – jumping Canopy Growth Corp. (CGC).
Both companies stand to reap gargantuan revenues should the U.S. legalize cannabis, and the recent slump for cannabis stocks is providing the perfect profit opportunity for investors.
This will be the #1 investing trend of 2021
It’s no secret that Wall Street’s rules are different from our rules.
Hedge funds and billionaire investors rig the game so they can make fortunes – while we scramble to pick up pennies.
But this new investment has completely turned the tables – by allowing you to use Wall Street’s strategies against them.
The technique works best in extremely undervalued and new industries.
And right now, legal cannabis fits the bill perfectly.
Click here to find out more.
In the Spotlight: Trouble for Housing on the Horizon
Many Americans are concerned with the prospect of a coming crash for the housing market.
Searches for phrases related to a housing crash are up 2,450% over the last month according to Google.
Housing demand has skyrocketed, resulting in housing prices and related stocks rising dramatically this year. Similar growth rates led to the housing crash of 2008, which nearly sunk the global economy.
While things are likely not nearly as dire this time around, there is cause for concern. I’ve got the housing market squarely on my radar, and I’ll be keeping watch for any signs of trouble. As always, I’ll keep you posted on any major developments.