For today’s Mind Over Markets column, I want to focus on a specific investment opportunity: marijuana.

Yes, marijuana.

Weed is no longer a pariah and counter-cultural act of rebellion. It’s a multi-billion dollar bonanza. Investors who ignore pot stocks will miss out on huge, market-thumping gains.

As the political landscape shifts, there are several reasons why marijuana stocks are poised to rise during this U.S. election season and beyond. Below, I explore the key factors contributing to this imminent surge, including changing public sentiment, legislative momentum, and the economic implications of legalization.

Changing Public Sentiment

Public opinion on marijuana has shifted dramatically over the past few decades. According to recent polls, a significant majority of Americans now support the legalization of marijuana for both medical and recreational use. This change in public sentiment is not just a passing trend; it reflects deeper cultural shifts and a growing recognition of the medicinal benefits of cannabis, as well as a broader acceptance of its recreational use.

During the 2024 presidential election, candidates across the political spectrum are increasingly addressing marijuana legalization as part of their platforms. This widespread public support makes it more likely that elected officials will prioritize cannabis reform.

Legislative Momentum

The legislative landscape for marijuana has been evolving rapidly. As of this writing, 38 states have legalized marijuana for medical purposes and 24 for recreational use (see chart).

There is growing bipartisan support for reform at the national level, with several bills already introduced in Congress aimed at decriminalizing or legalizing marijuana on a federal level. A change in federal law would be a game-changer for the marijuana industry, opening up new markets and significantly reducing the regulatory hurdles that have hindered growth.

One of the most anticipated pieces of legislation is the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which aims to remove cannabis from the list of controlled substances, expunge certain cannabis-related criminal records, and promote social equity in the industry. If passed, the MORE Act could unleash a wave of investment and innovation in the marijuana sector, driving up the stock prices of publicly traded canna-businesses.

Legalizing cannabis at the federal level would mint new marijuana millionaires almost overnight. The vastly expanded market would not only generate substantial tax revenue for governments but also create numerous jobs and stimulate economic growth in related sectors such as agriculture, retail, and manufacturing.

Moreover, the removal of federal restrictions would allow marijuana companies to access traditional banking services and capital markets, which have been largely off-limits due to the federal prohibition. This access to financial resources would enable companies to scale their operations, improve efficiency, and expand their product offerings, further enhancing their profitability and stock performance.

Industry innovation and diversification

The marijuana industry is not just about growing and selling cannabis; it encompasses a wide range of products and services, from edibles and beverages to medical applications and wellness products. This diversification is a key factor that makes marijuana stocks particularly attractive to investors.

Innovation is driving the industry forward, with companies investing heavily in research and development to create new products and improve existing ones.

Advancements in cannabis extraction and formulation technologies are leading to the creation of high-quality, consistent products that appeal to a broader consumer base. The development of cannabis-based pharmaceuticals is opening up new markets and revenue streams, particularly in the medical sector.

Advocacy groups and industry organizations are working tirelessly to promote marijuana reform and educate policymakers about the benefits of legalization. Their efforts are paying off, as evidenced by the increasing number of politicians who are vocal about their support for cannabis legalization.

High-profile endorsements from influential political figures exerts a significant impact on public perception and policy decisions. This year, as more politicians and candidates embrace marijuana reform as part of their platforms, the likelihood of legislative action increases. This political support creates a favorable environment for marijuana stocks, as investors gain confidence in the industry’s long-term prospects.

Global Reach

The trend toward marijuana legalization is not limited to the United States; it’s a global phenomenon. Countries around the world are reevaluating their cannabis policies and moving toward legalization.

As more countries embrace cannabis reform, the global market for marijuana products is expanding. U.S. companies that are well-positioned in this growing market stand to benefit enormously. What’s more, international legalization puts additional pressure on U.S. policymakers to act.

As the November 2024 election approaches, investors would do well to keep a close eye on developments in this dynamic and rapidly evolving sector. Marijuana represents one of the biggest investment opportunities you’ll see in your lifetime.

A Note from John Persinos: Why are certain cannabis stocks already jumping +1,000%? As I just explained in the above article, it has to do with seasonality…specifically, the U.S. presidential election.

It happens every four years. No matter who’s running for office. During the previous presidential election cycle, you had a chance to grab 569%… 1,020%… 2,426% and higher. Now it’s happening again, and you’ve no time to lose.

I’m the editorial director of Investing Daily. I’m also the editor-in-chief of our premium trading service Marijuana Profit Alert. To find the best cannabis stocks, you need to conduct due diligence.

The good news is, I’ve done the homework for you. For Marijuana Profit Alert, I’ve put together a portfolio of the best-of-breed marijuana equities. These holdings are poised to soar during this political season. If you’re fortunate enough to own these companies, you’ll reap a windfall.

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This article previously appeared on Investing Daily.