Benzinga reported that 2016’s presidential election saw Trump’s election push publicly-traded cannabis stocks sky high. Cannabis companies GW Pharmaceuticals and Zynerba Pharmaceuticals Inc rose significantly. These stocks were primarily traded in line with non-cannabis pharma stocks like Pfizer Inc. and Merck & Co., Inc.
The stock market saw unexpected fluctuations in stock prices four years ago. Stockhouse reported 100 percent+ gains in cannabis stock prices. However, at the time, they warned of the dangers of blindly buying the rumor.
During this election, Biden’s lead positively impacting cannabis stocks could be a sign of good things to come. This is especially the case now when considering 35 states (roughly one-third of the country) are experiencing legal cannabis in one form or another.
Similar to the majority of rises in the stock market, they occur because the fundamentals for the cannabis sector are changing. Or the technical picture of the stocks becomes ideal and more people are investing, elevating the stock prices.
During this election, cannabis stocks have grown more interesting with the potential for a change in power on the horizon.
It’s no question that Kamala Harris, Joe Biden’s running mate, was harsh on cannabis violations during her role as a prosecutor in California. Senator Tulsi Gabbard highlighted Harris’s record on drug-related offenses during an interview.
“She put over 1,500 people in jail for marijuana violations and then laughed about it when she was asked if she ever smoked marijuana,” Gabbard claimed, referring to an interview Harris had with The Breakfast Club.
These days, her stance is quite different. Forbes reports that some cannabis advocates, including Tommy Chong, Debby Goldsberry and Maritza Perez have applauded Harris’s current efforts to push cannabis legalization forward and expunge records of cannabis crimes.
President Trump’s administration has made several hostile anti-cannabis actions. Marijuana Moment reported that Trump’s administration rescinded Obama-era guidance on cannabis prosecutions and implemented policies to ensure immigrants ineligible for citizenship if they consume cannabis or work in the cannabis industry.
Compared to what President Trump has done for cannabis over the last four years, we can expect positive change in cannabis under a Biden presidency. CNBC reported that Biden and Harris support adult-use cannabis decriminalization, federal medicinal legalization, moderate rescheduling, permitting states to set their own laws and expunge prior cannabis convictions.
While Biden and Harris do not support federal cannabis legalization, their ideas are significant improvements compared to what we’ve experienced under Trump’s presidency. Thus, it seems some expect medical cannabis businesses to thrive and stock prices to rise during a Biden-era.