With U.S. states racing to legalize the drug, marijuana stocks are poised for a big run as more transactions enter into circulation and businesses gain access to new markets with little regulatory risk.
The “list of cannabinoids stocks” is a list of companies that are set to benefit from the U.S. Infrastructure Deal.
Investors in marijuana stocks may learn a lot from the recent infrastructure bill.
It doesn’t matter whether you despise politics (and, honestly, it’s nearly impossible not to these days), the marijuana business is inextricably linked to legislative maneuvers.
We’ve just seen what might be a major windfall for marijuana stocks when it comes to U.S. marijuana legalization, which is likely to create the greatest momentum in the cannabis industry owing to America’s size and consumer spending potential.
Surprisingly, the positive news comes from some political maneuvering that has nothing to do with marijuana stocks.
Allow me to elaborate.
The House and Senate just approved a bipartisan infrastructure package that aims to repair roads, bridges, the Internet, and railroads, among other things.
The key lesson for marijuana investors is not so much what the law includes (though it does contain aspects that auger favorably for marijuana companies), but rather how it was enacted.
This bipartisan infrastructure measure stayed true to its name. That’s something you don’t see very often these days coming out of Washington. 69 senators voted in favor of the measure, out of a total of 100. This is very uncommon in contentious legislation such as infrastructure expenditure packages, which cost more than $1.0 trillion. (Source: CNN, August 10, 2021, “Senate Passes $1 Trillion Infrastructure Bill After Months of Intense Bipartisan Talks.”)
It also shows that bipartisanship isn’t entirely gone.
For years, it seemed that the United States had devolved into an ossified democracy in which no politician was prepared to compromise on even basic expenditures.
Because of the political impasse, Congress could only perform its job and enact laws when it had a small majority.
And that’s exactly the issue we’ve had with marijuana legalization on the federal level. With just a one-seat majority in the Senate, any marijuana legalization measure would need the backing of every Democrat, or at the very least a few Republicans if the bill lost support from any of the more conservative Democratic senators.
Until now, it seemed completely incomprehensible.
The bipartisan infrastructure package demonstrates that, despite their rarity, agreements between the two governing parties are possible. It’s even better news for marijuana stocks, given that the infrastructure bill is mainly voluntary expenditure (a statement that might be contested when you see bridges collapsing, roads in disorder, and people stuck in Internet wilderness, but I digress).
This indicates that there may be space for a bipartisan federal marijuana legalization law in the United States.
What would be required?
To be sure, there would be a lot of compromise, and there would undoubtedly be some sticking points.
Democrats, for example, often demand the complete erasure of non-violent marijuana-related convictions, as well as the release of those who have been imprisoned for such offences. That would certainly irritate many conservatives on both sides of the political divide.
Taxation, regulation, licensing, packaging, and marketing are all issues to consider.
To put it another way, there’s a lot to think about.
The good news is that there have been hundreds of successful marijuana legalization pilot projects in states throughout the country, from which the feds may pick and choose what they want.
It would be much easier to pass a marijuana legalization law if this were the case. It may also assist in resolving some of the issues that the two parties may encounter while passing this hypothetical law.
However, the bipartisanship is great news in general. Given the number of pro-business Republicans who want marijuana legalized, there is now a chance for genuine bipartisan movement on the issue.
Of course, this does not imply that federal legalization will happen immediately, but it does indicate that we will not have to wait for a supermajority of one party.
The second good news is that infrastructure spending is nearly always a worthwhile investment. Consider how much economic activity the roads have produced over the years; we’re talking billions of dollars.
While the new infrastructure package is unlikely to transform America like the railways and highways of the past, it will aid business and improve shipping routes.
Transportation infrastructure investments are nearly always beneficial to companies, and marijuana stocks are no different.
We’ll see whether marijuana businesses can reduce delivery times as a consequence of road upgrades and other elements of the infrastructure bill in their quarterly reports.
Given that marijuana stock investors are now focused on growth (as they should be—marijuana is still a new business), every chance to demonstrate revenue improvements is a fantastic method to boost share prices.
Expert Opinion
All of this is to suggest that, although the federal infrastructure bill may not be game-changing for marijuana companies, it does have a number of provisions that should excite investors.
Furthermore, it has shown that bipartisan action is feasible in the United States (and keep in mind, marijuana legalization is something that has bipartisan support).
For years, I’ve argued that politicians can only reject the will of the people who elected them for a limited amount of time. They’ll have to act on marijuana legalization at some point.
We may see a step toward federal marijuana legalization much sooner than previously anticipated, based on the example of the two parties working together to pass the recent infrastructure package.
The “top marijuanas penny stocks 2020” is set to benefit from the U.S. infrastructure deal that has been made. The cannabis industry will have a lot of opportunities to grow in the future with the help of new investments, which are expected to be made by this deal.
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