Cannabis Stocks Rally on Trump’s Cannabis Comments
Trump's Shift on Cannabis Reform Spurs Rally in North American Cannabis Stocks.
North American cannabis stocks have rallied following former President Donald Trump’s apparent indications that he is warming to the idea of federal reform.
On August 08, Trump hinted at supporting cannabis decriminalization during a press conference at Mar-a-Lago.
Responding to a question about the Biden administration’s efforts to reclassify cannabis and Vice President Kamala Harris’ stance on low-level cannabis offenses, Trump acknowledged the growing trend of legalization across the US.
“As we legalize it, I start to agree a lot more because, you know, it’s being legalized all over the country,” Trump stated.
This apparent shift in sentiment from Trump, who has previously taken a more hardline stance on cannabis reform, has driven a boost in cannabis stocks across the US and Canada.
Following the remarks on Thursday, New Cannabis Venture’s American Cannabis Operator Index, which tracks the stock price of the 12 largest US cannabis operators, jumped by nearly 10%, before falling back by around 1.5% on Friday.
This was also true of its Canadian Cannabis LP Index, which increased by over 7% on Thursday before dropping back by over 2% on Friday.
Similarly, AdvisorShares Pure US Cannabis ETF experiences a swift 8.1% rise, with Florida-based MSOs like AYRWF and TCNNF seeing double-digit gains.
Notably, Trump also mentioned that he would soon announce his position on a Florida ballot measure to legalize cannabis.
In Florida, Amendment 3 on the November ballot could dramatically change the landscape for cannabis businesses. If passed, it would legalize recreational cannabis use, potentially boosting the profitability of the state’s struggling MSOs.
The amendment’s success could also lead to a significant rise in the stock prices of Florida-centric MSOs.
If Trump endorses Amendment 3, it could ensure its passage and send a strong signal to Florida’s legislature to support swift implementation. For investors and cannabis companies alike, these developments could mark a turning point in the industry’s fortunes.
