The world of cannabis has always been lucrative yet only in recent years have there been thriving markets across the country. The widespread legalization means that there’s more information, analytics, and data available on the science, economics, and growing trends of the cannabis industry. For example, the West Coast is currently going crazy for Dog Walker mini-cones which could very well start sweeping the nation soon enough.
Beyond the methods of consumption, what’s driving the cannabis industry right now? Tony Venosa, a Senior Options Strategist at Schaeffer’s Investment Research, recently sat down with Benzinga where he explained three main factors that are helping the cannabis industry to new heights.
For one, legalization is growing rapidly. More and more states have recently passed bills that would decriminalize cannabis and open a legal economy for the cannabis market to grow. This is a reflection of the growing acceptance of cannabis and the efforts put towards eradicating the stigma surrounding it. 91% of Americans believe it should be legal for either recreational or medical use which means that even conservatives states, like Utah, are hopping aboard the green wave.
“The marijuana program in Utah may also provide the blueprints for other conservative states such as Idaho and Kansas for adoption,” Venosa said.
Additionally, there are efforts at privatized companies that reveal anticipation for widespread cannabis decriminalization. Venosa said that, specifically, Amazon’s decision to remove marijuana from their drug screening program was a big move. He said that this move in and of itself could open the doors for other employers to follow a similar path.
Finally, the cannabis industry is in the midst of a consolidation phase which is reaping big bucks for investors. With more mergers and acquisitions happening among marijuana companies, Venosa explained that this is a positive sign of what the cannabis industry will have to offer on the stock market.