The Medical Marijuana Business Daily reports that several publicly traded companies serving the medical cannabis industry have soared in the stock market since the election:
Investors pumped money into the sector after Colorado and Washington legalized cannabis for recreational use and Massachusetts passed medical marijuana legislation. In some cases, MMJ-related stocks hit new highs and saw record trading activity, with millions of shares changing hands vs. tens of thousands on a typical day. That’s particularly impressive given that the overall stock market plunged after the election.The Daily notes the stocks have dropped somewhat since then, and that not every cannabis business saw its stocks rise with the election. Nevertheless, "the increased investor interest in cannabis bodes well for the future of the industry," they write, "which could grow by leaps and bounds over the next year."
Are the buyers who drove stock prices up last week right to be optimistic? Looking at the market to predict the future of drug policy is kind of like using Intrade to predict a presidential election -- only time will tell at this point. But investors are doubtless thinking about a lot of the same things that we are right now: Will the passage of initiatives to legalize marijuana create political pressure on federal officials to ease up on the medical marijuana industry, or on Congress? How will the feds respond to the legalization votes? They must also wonder, if legalization systems do get established in these states, how will that affect the people (many of them our friends) who've risked much to build a medical marijuana industry serving patients there -- will they be winners or losers in that new business environment?
In the long run, I believe the answer to the first question at least is "yes" -- states enacting marijuana legalization will ultimately put pressure on all the branches of government to do something to accommodate it, while giving an advantage to our allies in government in their efforts to change things. More states will certainly do this, given where public opinion seems headed -- the questions for investors in marijuana are how long that will take, and whether their businesses will survive until then. For advocates, the question is how many lives will be needlessly ruined (again, many of them of our friends) by prohibition in the meanwhile.