Weekly Weed Report (04-26-22)
Welcome to my latest video presentation. Below is a condensed transcript.
For decades, marijuana was demonized by mainstream politicians and religious groups in extreme terms that approached unintentional satire. Popular pejorative nicknames for marijuana have included The Devil’s Weed, Satan’s Lettuce, and (try not to snicker) The Anti-Christ’s Oregano.
Those days are ending. Let’s take a look at the latest trends that underscore the mainstreaming of marijuana.
Federal government. President Joe Biden on April 26 granted clemency to dozens of people with non-violent federal drug convictions on their records. These moves represent the first acts of clemency of his administration.
The president commuted the sentences of 75 individuals who were previously released to home confinement due to the COVID-19 pandemic. Biden’s move wasn’t the mass pardon for which pro-marijuana advocates have been lobbying. Marijuana industry leaders, lobbyists, civil rights groups, and even several U.S. Senators have been pushing for widespread clemency.
Regardless, the move Tuesday was seen by legal justice reformers as a good start. Many federal and state lawmakers are determined to dismantle the failed War on Drugs. In addition to the 75 sentence commutations, Biden also issued three pardons.
President Biden stated: “America is a nation of laws and second chances, redemption, and rehabilitation. Elected officials on both sides of the aisle, faith leaders, civil rights advocates, and law enforcement leaders agree that our criminal justice system can and should reflect these core values that enable safer and stronger communities.”
State-level taxation. States that have legalized marijuana are reaping windfalls in new revenue, sometimes exceeding the tax receipts from traditional sources. Arizona is the latest example.
Arizona generated more tax revenue from legal marijuana sales than from tobacco and alcohol combined in March, according to new state data released last week.
Tax deposits to the state general fund from medical and adult-use cannabis reached about $6.3 million in March, versus $1.7 million from tobacco and $3.7 million from alcohol sales, according to the Arizona Joint Legislative Budget Committee (JLBC).
Beyond that $6.3 million in cannabis tax dollars for the general fund, marijuana excise taxes separately surpassed another $11.9 million last month, for a total of $18.2 million in marijuana revenue. Most of that marijuana tax revenue goes to the state, with smaller portions distributed to cities and counties.
Polling data. A new poll confirmed a trend that this publication has long followed: a majority of Americans support marijuana legalization, on a bipartisan basis.
Research firm SSRS found that 69% of Americans back adult-use legalization, while 92% back legalizing cannabis for medical use.
In regard to recreational legalization, 78% of Democrats, 74% of independents and 54% of Republicans said they favor the change.
The SSRS poll interviewed 1,009 adults from April 1-4, with a +/-3.5 percentage point margin of error. The poll found that 58% of Americans believe that marijuana is less harmful than alcohol. The poll also found that 65% of Americans said they’ve personally tried cannabis (for charts and more data, view the above video).
We’re witnessing an astounding reversal in public attitudes about pot that’s nothing short of a social revolution. An increasing number of average citizens from diverse demographic groups are not only embracing marijuana legalization, they’re also using it. And they think it’s less harmful than booze. That’s good news for investors in the sector.
Regardless of your stage in life, cannabis investments confer market-beating potential and they’re a must for your portfolio.
The War on Drugs, which especially targeted marijuana, is over. Marijuana won. Meanwhile, other drugs such as “magic mushrooms” and LSD are getting legalized as well. As I’ve just explained, it’s what the public demands.
But to profit from these trends, you need to conduct due diligence. That’s why I wrote a new book: The Wide World of Weed and Psychedelics.
As they increasingly become legal around the world, cannabis and related psychotropic substances are generating huge gains for proactive investors. But the time to act is now, before the herd makes these investments too pricey.
My book is your one-stop primer to profiting from the booming marijuana and psychedelics industries. Click here to secure your free copy.
John Persinos is the editorial director of Investing Daily.