Congress Gives Pot The Green Light
Meet Harry J. Anslinger, the first commissioner of the U.S. Treasury Department’s Federal Bureau of Narcotics. Anslinger served during the presidencies of Hoover, Roosevelt, Truman, Eisenhower, and Kennedy.
For decades, Anslinger wielded unchallenged power over the nation’s drug policies. He led the fight against marijuana and was instrumental in getting pot banned by the federal government.
Anslinger once said: “Marijuana is the most violence-causing drug in the history of mankind.” He also said: “Reefer makes darkies think they’re as good as white men.”
So, yes, in the context of history, legalizing marijuana in America is a very big deal. On Monday, we got another step closer to that momentous goal. Marijuana investors are euphoric, with good reason.
Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chair Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) on Monday announced a plan to release a federal marijuana legalization proposal “in the early part of this year.” In a statement, the three lawmakers asserted:
“We are committed to working together to put forward and advance comprehensive cannabis reform legislation that will not only turn the page on this sad chapter in American history, but also undo the devastating consequences of these discriminatory policies. The Senate will make consideration of these reforms a priority.”
Senator Schumer posted the following tweet on February 1:
The Senators also asserted Monday:
“In the early part of this year, we will release a unified discussion draft on comprehensive reform to ensure restorative justice, protect public health and implement responsible taxes and regulations. Getting input from stakeholder groups will be an important part of developing this critical legislation.”
All three Senators have consistently pushed for lifting the federal prohibition against pot. Legislation to federally deschedule cannabis passed the Democratic-led House last year, but it went nowhere in the Republican-controlled Senate. Now that the Democrats have seized the majority in the Senate, the table is set in Congress for long-deferred action.
U.S. Rep. Earl Blumenauer (D-OR), co-chair of the Congressional Cannabis Caucus and a long-time advocate of marijuana legalization, stated in a press release Monday that the two Democratic-controlled chambers in Congress are “prepared to move forward together on comprehensive cannabis legislation.”
The likely scenario is the Senate will refine the House-passed bill, the Marijuana Opportunity Reinvestment and Expungement Act of 2019 (aka the MORE Act). Among other things, MORE would decriminalize marijuana on the federal level.
Pot stocks on fire…
Marijuana equities have been soaring in recent months, as investors anticipate cannabis “normalization” on the federal level. The benchmark Horizons Marijuana Life Sciences Index ETF (HMMJ) jumped 1.87% Monday and it’s up nearly 41% year to date.
With Democrats seizing the gavel in the Senate, passage of MORE is increasingly likely. President Joe Biden has indicated he would sign the bill and Vice President Kamala Harris was MORE’s chief sponsor when she served in the Senate.
The cannabis industry’s momentum appears unstoppable. A Gallup poll in November showed that 68% of Americans, a record high, support marijuana legalization.
Venture capitalists in recent weeks have pumped massive amounts of money into marijuana companies, as Washington increasingly embraces cannabis. The lifting of the federal prohibition of pot would accelerate this trend.
When looking for suitable marijuana investments, my strategy is to find companies that apply a unique value-add, whether in the recreational or medicinal sector.
I focus on pot companies with patents, proprietary technology or special managerial know-how. I also prefer companies with solid balance sheets, branded products and extensive supply chains. These are the marijuana investments that will survive and thrive, whereas it’s no great feat to simply grow a plant or squeeze oil out of a leaf.
Some cannabis stocks are stellar investments. Many others are not. You need to conduct due diligence. The good news is, we’ve done the homework for you. My team has unearthed hidden gems in cannabusiness that most investors don’t even know about.
The time to invest in these marijuana companies is now, before the federal ban on weed is lifted. If you wait until a bill is signed, many marijuana equities will have gotten expensive.
To learn more about reasonably valued marijuana plays, click here now for a free report.
John Persinos is the editorial director of Investing Daily. He also writes the twice-weekly e-letter Marijuana Investing Daily. Send your questions or comments to email@example.com. To subscribe to John’s video channel, follow this link.