For the second day running, marijuana stocks are in a funk. Shares of cannabis industry giant Canopy Growth Corporation (NYSE:CGC) fell 6% on Monday, while smaller Aurora Cannabis (NYSE:ACB) slipped 6% and Tilray (NASDAQ:TLRY) tumbled 13%.
Personally, I blame Joe Biden for this — and Donald Trump, too.
Earlier this month, the Vice Presidential debate featured a clear and unequivocal promise from Vice Presidential candidate Kamala Harris to “decriminalize marijuana” and “expunge the records of those who have been convicted of marijuana” related offenses, removing the stigma from cannabis use. One week later, Presidential candidate Joe Biden repeated the pledge to “decriminalize marijuana, wipe out the record.”
Marijuana stock investors may have entertained similar hopes for the final presidential debate, held last Thursday — the rising stock prices of each of Canopy Growth, Aurora Cannabis, and Tilray certainly seemed to suggest that was what they were hoping, at least. But as it turned out, neither President Trump nor his opponent uttered a single word on the subject of marijuana legalization. The subject of cannabis simply didn’t come up.
And all three of these marijuana stocks have declined for the last two weekdays in a row in consequence.
Should investors really be disappointed about that, though?
After all, if you tally up all the states that are voting to legalize marijuana for either medical use, recreational use — or both — next month, there’s a very real chance that come Nov. 4, marijuana could become socially acceptable and readily accessible in more than three out of four U.S. states (and the District of Columbia and Puerto Rico).
Sure, no one took the opportunity to talk up cannabis at last week’s debate. But even so, the Biden-Harris ticket remains on record supporting cannabis legalization,and continues to lead in national polls. If they prevail on Nov. 3, marijuana could very well become legal at the national level — and that would be very good news for marijuana investors.