Cannabis stocks down sharply today on news Attorney General Jeff Sessions will rescind the Cole memo – which banned federal funds being used to prosecute state cannabis programs.
Here’s a link to coverage from Leafly.
I’ll be doing a longer piece on the news but here’s a quick take.
In the short run its hurting cannabis stocks, particularly US cannabis stocks. It’s never fun watching stocks you own fall sharply. So that part kind of sucks.
However – in the long run this isn’t even a speed bump in the long-term growth of the US cannabis industry or cannabis stocks.
What Sessions move does is essentially defer any legal action to the state AGs. And I can almost guarantee that the state AGs for places like California and Colorado where recreational cannabis is legal are not going to go after the cannabis industry. It’s not a fight any of them are even interested in picking and even if they were good luck taking down a $7 billion annual industry with a 20-year history.
So my advice is to sit tight for the time being – don’t panic sell your cannabis stocks. If anything this is a great chance to buy low.
Cannabis stocks have had an amazing run in the last week and are still up a ton in a short amount of time. Once this storm blows over in the next few days I am expecting cannabis stocks to resume the bullish trend higher.