A month of strong outperformance shows that investors are starting to get bullish on cannabis stocks. Here are six reasons you should join them.
Cannabis stocks are up 14% in the past month, handily beating market gains of around 3.5%.
What's going on?
The sector strength is a signal that the long-awaited federal rescheduling of cannabis may be on the horizon.
Now that the federal spending bill is out of the way and Middle East tensions have calmed down, the administration of President Donald Trump may be free to focus on other domestic policy issues.
With key midterm elections around the corner, Trump and the Republicans need domestic policy victories to win over younger voters. Polling consistently shows that voters, younger voters and voters in both parties want cannabis reform. Trump promised rescheduling during his election campaign, and he backs federal banking reform, overt moves to win over Democrats and young voters in swing states.
The background here is that moving cannabis to Schedule III from Schedule I under the Controlled Substances Act would help cannabis companies by neutralizing an IRS provision that bars them from deducting operating expenses.
Copyright
©420 Intel