CGC - Should You Add Marijuana Stocks To Your Portfolio In 2021?
Investors routinely ask if they should be buying marijuana stocks . No investor wants to miss out on a timely opportunity for juicy returns. After all, U.S. federal decriminalization could be in sight depending on several political factors, and lots of market watchers expect such a policy change to catalyze pot stock prices. Many states have already legalized cannabis for medical and recreational purposes, which has been a boon to multistate operators that can sell cannabis there. But what does U.S. decriminalization of pot mean for marijuana giants north of the border, namely Canopy Growth (NASDAQ: CGC) which has a deal in place to merge with Acreage Holdings (OTC: ACRGF) that's contingent on full federal legalization of cannabis?
First, it's important to understand the difference between the more likely decriminalization policy and the much more remote possibility of full federal legalization in the U.S. Decriminalization means little to overall pot demand and consumption of cannabis. The recent MORE bill passed by the House of Representatives seeks to expand financial services to cannabis businesses and expunge the criminal records of those convicted of certain marijuana-based offenses. To become law, this bill will need to gain traction in the Senate, which is not a sure thing.
For investors, only federal legalization of marijuana in the U.S. would be a total game-changer. So, for those expecting the U.S. under President-elect Joe Biden to follow through on his promises to decriminalize cannabis, is Canopy Growth a buy?
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Should You Add Marijuana Stocks To Your Portfolio In 2021?