Marijuana stocks jumped Thursday, sending the ETFMG Alternative Harvest exchange-traded fund up as much as 6% after U.S. Senator Kamala Harris made a strong statement about the prospects for legalization in Wednesday night’s vice-presidential debate. “We will decriminalize marijuana and we will expunge the records of those who have been convicted of marijuana,” Harris said. Bloomberg Intelligence Analyst Ken Shea said he saw no other news to account for the broad-based rally. “Maybe her comment served as a reminder to the market, and the prospects of a democratic president and/or sweep seems increasingly possible, based on polling trends,” he said.
Four years ago there was a lot of momentum behind the cannabis movement. Money was flowing in, partnerships with established drinks and tobacco companies were flourishing and the market was awash with start-ups.
Donald Trump’s electoral success and his ambivalence towards legalisation resulted in a significant rationalisation for the cannabis sector. The market suddenly looked smaller, the challenge of banking, transportation across state lines and the battles for market share took chunks out of growth forecasts. Many stocks went bust and even the largest experienced deep declines.Click HERE to subscribe to Fuller Treacy Money Back to top