Forget the government hacks in Washington and their opinion on the marijuana industry for just a moment.
Polls in the last five years show public approval of legal marijuana is rapidly rising.
An October 2016 Gallup Poll found that 60% of respondents approved. Gallup reported:
‘When Gallup first asked this question in 1969, 12% of Americans supported the legalization of marijuana use. In the late 1970s, support rose to 28% but began to retreat in the 1980s during the era of the “Just Say No” to drugs campaign. Support stayed in the 25% range through 1995, but increased to 31% in 2000 and has continued climbing since then.
‘In 2013, support for legalization reached a peak for the first time after Washington and Colorado became the first states to legalize the recreational use of marijuana. Since then, a majority of Americans have continued to say they think the use of marijuana should be made legal.’
The trend is clear: Much of the American public is over its reefer-madness thinking.
Yes, there are political setbacks to overcome. Still, I consider these curves in the road, not roadblocks.
Just consider Rhode Island and its southern New England neighbour Massachusetts.
Massachusetts residents gave the green light to recreational marijuana legalisation in November. But local government has been dragging its feet when it comes to writing and passing the actual law.
In the meantime, Rhode Island is fast-tracking legalisation. Its state legislature is exploring how it can advance legalisation laws within the governing body, not at the ballot box.
Rhode Island sees the growth potential in bordering states with new lax marijuana laws. It needs to act fast to generate the same tax-revenue potential those nearby states will soon enjoy.
Bottom line: States want the dough.
Extra Revenue from Legalised Marijuana
Look at Colorado. It’s emerging as the model template. Tax revenues from marijuana commerce exceed dollars from alcohol sales.
Still, many advocates are concerned about the stances of President Donald Trump’s administration. They worry federal laws outlawing marijuana use and sales will strengthen.
They also fear that legalisation’s state-by-state momentum will slow.
My analysis: Trump will see pot as good business. He’s a businessman first and foremost. He has no history of taking an aggressive stance against marijuana.
He is forming an administration that will function more like a boardroom than a Cabinet. Bottom-line priorities are much higher in policymaking under Trump than any administration in modern history.
Trump will manage people like Jeff Sessions, who has made many anti-pot legalisation statements. He also will manage other hard-liners like vice presidents, and not independent-thinking Cabinet members. As long as the aim is economic growth, pot is safe.
Finally, Trump advocates that states make up their own minds on these issues and act accordingly.
By all indications, pot’s trend line is approaching the dividing line. Resistance to its momentum is weaker than the surging acceptance.
That will trump any social, health or political pushbacks. Legal pot’s economics will increasingly emerge as a good bet for politicians, pot advocates and investors alike.
Until next time,
For Markets & Money
Editor’s Note: Having conquered America, ‘Marijuana Mania’ is now sweeping across Australia. Opportunities to invest in an industry at the ground floor like this don’t come around often. Medicinal marijuana has the potential to reshape Australia’s healthcare sector…rocketing the companies involved into the stratosphere, while making early investors incredible amounts of money.
For more on the biggest trend taking the ASX by storm, click here now.