The Top 5 Reasons Cannabis Stocks Could See Higher Highs

Aug 31, 2022
Cannabis Industry And Investments Exploding In Profits Concept

Investors may want to keep an eye on beaten down cannabis stocks.

While there’s no word on federal legalization yet, there is growing support.

For one, as we get closer to mid-term elections, cannabis stocks could see higher highs.  States, such as Arkansas, Maryland, Missouri, and South Dakota are all set to vote on adult-use cannabis in November.  

Two, we also have to consider that there’s massive support for legalization.

Helping, there’s still growing support for federal legalization.  According to Tilray CEO Irwin Simon, as quoted by Yahoo Finance, “The US has a $100 billion opportunity in cannabis. If you look at cannabis today in the US, 93% of Americans want medical cannabis legalized and about 63%, 65% want adult-use. Today, it’s legal in about 33 states, and plus DC. So, it’s out there that everybody– well, not everybody, but the majority of people want cannabis legally.”

Three, for the first time ever, more Americans smoke cannabis than cigarettes.  According to data from a survey conducted in July, a record 16 percent of Americans say that they currently smoke cannabis, while just 11 percent reported smoking a cigarette in the past week, as noted by Marijuana Moment.

Four, cannabis beverages are becoming far more popular.

As noted by CNBC, “Weed-infused beverages are popping up in more places, with major drink makers including Pabst Blue Ribbon and Constellation already pushing into the market. Other beer and spirit companies to have entered this space include Anheuser-Busch, the maker of Budweiser; Constellation Brands, which makes Modelo Especial and Corona Extra; Lagunitas Brewing Company; and Ceria.”

“The lineup of weed drinks contains varied doses of THC — generally anywhere from 2.5 milligrams to 10 milligrams – mixed only with water-based drinks. The mixing of cannabis and alcohol is prohibited in most states that allow cannabis use,” they added.  

Five, global growth may be about to explode.

In Germany, Chancellor Olaf Scholz is pushing for cannabis legalization.  When and if there’s legalization in Germany, many other European countries could follow suit.

In short, buying cannabis stocks for the long-term may be a good bet.