Divided America Stands United on Pot
Our country is sharply divided, but it stands united on at least one issue: marijuana legalization. Americans like weed. In fact, they like pot more than POTUS.
According to a new national poll conducted last week, legalizing marijuana gets greater support from U.S. adults than President Joe Biden’s job performance, a $15 minimum wage, the impeachment trial of ex-President Donald Trump, rejoining the Paris climate accords, or a pathway to citizenship for undocumented immigrants.
Among the survey’s respondents, 61% said they thought recreational marijuana legalization is a good idea, while 39% said it’s a bad one (see chart).
Among Democrats in the poll, 74% support recreational marijuana legalization, versus 60% of Independents and 46% of Republicans. By age, over a majority support the policy in every age group besides those aged 65 and older, where only 38% think it’s a good idea, as compared to 62% who oppose it.
In the poll, President Biden’s job performance sits at 49% approval and 39% disapproval. Respondents were nearly evenly divided on the topic of ex-President Trump’s impeachment trial, with 51% against and 49% in support.
The cannabis industry’s popularity is confirmed by other polls. Notably, a Gallup poll in November showed that 68% of Americans, a record high, support marijuana legalization. Gallup first gauged the public’s views of marijuana legalization in 1969, when only 12% of Americans supported it.
You’ve come a long way, baby…
Social attitudes toward marijuana have come a long way. There was a time when getting caught with a marijuana joint could ruin your career. Now, colleges are teaching courses in “marijuana entrepreneurship.”
State-level marijuana legalization initiatives won big at the polls November 3. In a year that saw the highest level of voter turnout in U.S. history, marijuana legalization initiatives passed in red and blue states, in many cases with more votes than the candidates on the ballot.
Meanwhile in Congress, a House-passed bill to lift federal pot restrictions is advancing in the Senate. Marijuana’s popularity is on a roll (so to speak) and so are pot stocks.
The benchmark Horizons Marijuana Life Sciences Index ETF (HMMJ) has generated a gain of 41% year to date (as of market close February 8). After the brutal shakeout and correction in the marijuana sector that occurred in late 2019, I counseled disheartened readers to scoop up quality pot stocks that were on the bargain shelf. I hope you’ve been following my advice.
Marijuana’s market-beating momentum should continue for the rest of 2021 and beyond, for a confluence of powerful reasons.
The coronavirus pandemic has clobbered many sectors of the economy, but it’s been a godsend for marijuana. Several states have deemed marijuana an “essential service” and allowed pot businesses to remain open during lockdowns.
Last November, five U.S. states passed a total of six ballot initiatives for legalized cannabis programs. This year, 10 additional states are considering initiatives that would legalize marijuana to various degrees.
According to a report released February 1 by New Frontier Data, if these initiatives pass in all 10 states, it could collectively add a combined $8 billion in annual legal sales.
A wave of corporate consolidation in the marijuana sector also is benefiting investors, as weed companies join forces and get into fitter financial shape. Case in point: This month, Jazz Pharmaceuticals (NSDQ: JAZZ) agreed to buy medical marijuana developer GW Pharmaceuticals (NSDQ: GWPH) for $7.2 billion.
The JAZZ/GWPH merger is expected to close in the second quarter. Jazz focuses on neuroscience, which makes GWPH and its brain-related therapies a perfect fit for the acquirer. The merger news boosted marijuana stocks across the board. On the day the merger was announced, GWPH stock soared nearly 45%.
As I’ve just made clear, cannabis investments are a must for your portfolio. Marijuana “profit catalysts” abound. However, the trick is finding the right pot stocks. Some cannabis stocks could make you rich, whereas with many others, you could lose your shirt.
Looking for a safe way to make money on marijuana legalization? A small group of everyday Americans are earning up to $55,362 a year from one company’s unique marijuana profit-sharing “program.” To get in on the action, click here.
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 firstname.lastname@example.org. To subscribe to John’s video channel, follow this link.