Following the apparent victory of Joe Biden against Donald Trump for the U.S. Presidency, the cannabis stock market skyrocketed.
It appears that cannabis investors are bullish on the industry's prospects following the November 3rd Presidential election that has placed Joe Biden as the victor against the current President Donald J. Trump.
As we've discussed previously, both Joe Biden and Kamala Harris have vowed to decriminalize cannabis federally upon legalization, which certainly explains part of the bump in the cannabis stock market.
Moreover, not only has Biden been tentatively declared the 46th President of the United States (amid ongoing legal disputes and allegations of illegitimate voting by the Trump Campaign), but there was also a huge wave of cannabis legalization on Election day, which saw five states, Montana, New Jersey, South Dakota, Arizona, and Mississipi legalizing either recreational or medicinal marijuana.
And if all of that wasn't enough, Oregon even decriminalized psilocybin for therapeutic purposes, suggesting that American citizens are certainly open to a more libertarian approach to drug policy if given the choice.
Following the results of the U.S. Election, cannabis giants such as Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) both soared, and the North American Cannabis Index more broadly enjoyed a solid spike.
On the reason behind the spike, Canopy's CEO David Klein commented amid a conference call:
"We believe the Biden win is an important step on the path to federal permissibility of cannabis in the U.S. market through decriminalization and descheduling."
"The results of the ballot initiatives clearly showcase that support for adult-use marijuana legalization extends across geographic and party lines and is supported by a majority of Americans. Legal marijuana is becoming an American norm. This will likely increase pressure on Congress to pass major federal marijuana reform in the very near future."
As we touched upon yesterday, these bullish sentiments surrounding the cannabis industry, in addition to the green wave of marijuana legalization that occurred on November 3rd send a clear message to Joe Biden that cannabis is an issue that can't simply be ignored.
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