With Sen. Ron Wyden’s recent proposal of bill number 420 to de-schedule marijuana by removing it from the Controlled Substances Act and another initiative to allow banks to serve cannabis companies without risk of prosecution, investor demand for exposure to the green rush is on the rise, approaching levels not seen since October 2018, when recreational cannabis was legalized in Canada.
As seen in the chart below, investor interest in marijuana stocks makes the combined interest in oil stocks, gold stocks, and biotech stocks look non-existent.
Alongside this trend, investor interest in cryptocurrencies has fallen from their December 2017 peak to levels lower than biotech stocks, which had a rough 2018 and are poised for a rough 2019.
If the United States’ federal government were to end its war on weed, it would be the largest growth catalyst that the green rush has ever seen. Also, if the House Financial Services Committee were to ease its stance on banking for cannabis companies, it would remove one of the largest barriers facing U.S. marijuana companies and could possibly send U.S. bank stocks flying as they get the green light to finance a new multi-billion dollar market.
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