By Ray Blanco
This post [CANNABIS ALERT]: Ray Blanco: “Sessions Can’t Stop U.S. Pot” appeared first on Daily Reckoning.
A monumental policy shift announced by the U.S. federal government on pot last Thursday sent the pot markets into a frenzy.
U.S. Attorney General Jeff Sessions’ announcement that he will roll back the Obama-era “Cole memo” marijuana protections triggered a massive sell-off of pot stocks, especially in U.S.-based companies.
Early morning Friday, it was anyone’s guess how the U.S. pot market might be affected.
But as I expected, state officials strongly pushed back, and stocks have already recovered their losses.
U.S. States React
Politicians from both parties, alongside industry leaders, have already spoken out against the intrusion on states’ rights with Jeff Sessions’ actions.
In Alaska state officials are moving along with a “business as usual” approach.
According to a recent Marijuana Business Daily report, Alaskan Gov. Bill Walker sent a letter to Sessions in 2017 requesting to keep the “Cole memo” protections in place.
Alaska has become heavily reliant on the tax revenue boost pot has brought the state.
California, of course, is not bucking with its marijuana plans either.
Chief of the California Bureau of Cannabis Control Lori Ajax notes in a statement she “fully expects” the DOJ to “respect the rights of states” when it comes to the overwhelming public support legal marijuana has garnered.
Vermont barely batted an eye in reaction to Sessions’ new directives.
Yesterday the state made headlines, becoming the first to pass an actual bill that legalizes recreational marijuana. According to Vermont’s Public Radio, Republican Gov. Phil Scott has stated he plans to sign the bill into law soon.
Colorado, one of the first states to legalize marijuana, also plans to stay the course. State Attorney General Cynthia Coffman was quoted saying in a recent CNN report that “We will continue as a state to exert our right as a sovereign state to control what happens in our borders with regard to marijuana regulation and enforcement.”
Massachusetts Gov. Charlie Baker, another Republican, called Sessions’ rollback of the “Cole memo” the “wrong decision.”
Massachusetts’ Cannabis Control Commission released a statement in response. The group states they “will continue to move forward with our process to establish and implement sensible regulations for this emerging industry in Massachusetts.”
These states are not the only ones.
In fact, every state with legal marijuana legislation on the books has announced that it will NOT bow down to the pressures of federal enforcement.
But what does this mean for you, the pot investor?
Marijuana Stocks Roar Back
Last week we reported that U.S. pot stocks dropped drastically in the wake of Jeff Sessions’ announcement.
In one day the U.S. Marijuana Index fell from grace, dropping over 20%. But the power of profits and the intrigue of buying on the dip shot the index back to near all-time highs yesterday.
Check out the five-day chart:
The data makes it clear: U.S. pot is moving full steam ahead.
There may be a few speed bumps along the way.
Another announcement from the feds, for example, could slow investing again temporarily, but the writing is on the …read more
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