Marijuana legalization looks set to “blaze” across the United States in 2018. Currently, there are at least 12 states considering legalizing pot this year. They could join the 30 states and D.C. that already have laws legalizing marijuana in some form.
There is strong support for full legalization with over 60% of Americans wanting marijuana law reform to be passed at both the state and federal level.
Personally, I think it is only a matter of time, say 2-5 years, that pot will be legal across the country, regardless of the current administration’s resistance to legalization. The demand is just too strong.
They’ll just have to have some strict controls on it, similar to the ones already in place for alcohol products. For instance, you know how strong a certain liquor is by the Proof noted on the bottle. There should be something similar to let you know how much THC is in the pot brownie you are about to eat. I know they already have this in place in many of the states that already legalized it but there needs to be some federal guidelines once they legalize it on the federal level.
The following link includes a great interactive map of where marijuana is currently legal or in the process of becoming legal for both medical and recreational uses (updated as of 01/08/18):
http://www.governing.com/gov-data/state-marijuana-laws-map-medical-recreational.html
Once the big tobacco and agricultural companies know the fed is going to legalize it, they will be getting into the industry in a big way and marijuana will be mainstream. Their lobbyists will know way before we do.
I think the best way to invest in this sector is either via an actively managed mutual fund that specializes in the cannabis industry or an ETF that holds the major players, many of who are based in Canada. This is an industry in its infancy so you have to do some extensive research in order to make a sound investment decision.
Please feel free to contact me with any questions.
Joe Baker, CFP®
Baker Asset Management, LLC
joebaker@bakerassetmanagement.com
