This week US attorney general Jeff Sessions struck uncertainty into the world of legal marijuana.
Pot stocks dipped up to 35% on the news that Sessions had rescinded what has become known as the Cole Memos.
The Cole Memos were the legislative embodiment of Obama’s (somewhat weak) direction that federal prosecutors could “decide individually how to prioritize resources to crack down on pot possession, distribution and cultivation of the drug in states where it is legal.”
Simply put, Jeff Sessions is removing assurances that cannabis producers won’t be targeted by the feds. The US government is in effect reserving the right to prosecute legal cannabis producers under federal law, even in states where cannabis is now legal.
So why is this the time to buy cannabis stocks?
Because there’s too much money to be made to go back now.
Images of Californians lining up to buy legal pot should be all the assurance a savvy investor needs to recognize the simple fact that consumer demand for cannabis isn’t going away.
Canadian pot stocks will be ultimately unaffected (if not bolstered) by the news, given that most are focused on legal recreational in Canada in July 2018 as well as international exports.
Needless to say, the Trump administration has far bigger issues to worry about in the big picture.
We’re jumping on what we feel is an artificial dip in a market with a very bright future.
Maybe you should too?