Recent news reported on Thursday by Marijuana Moment won’t put any money into the pockets of cannabis companies or investors – directly. However, it undermines one of the major (phony) arguments of anti-cannabis zealots. And so it’s potent ammunition for legalization proponents across the U.S.
The argument from Prohibition advocates is this. Legalized cannabis (and cannabis use) is a societal “negative” for U.S. states and communities.
The propaganda comes in many forms.
Supposedly, legalizing cannabis will increase the crime rate. Supposedly, legalizing cannabis will increase under-age use of cannabis. Supposedly, legalizing cannabis will increase traffic accidents/fatalities. Supposedly, legalizing cannabis will reduce property values.
None of it is true.
It’s already been widely reported that legalizing cannabis doesn’t increase the crime rate. In fact, there are a number of reasons why cannabis legalization may actually reduce overall crime.
Legalizing cannabis does not cause usage of cannabis by teenagers to increase. It causes teenage usage to decrease.
Legalizing cannabis does not lead to any increase in traffic accident fatalities.
Now evidence is emerging that when Americans are looking to establish their home that legalized cannabis is viewed as a positive amenity. Evidence comes in the form of a recent study published in the journal, Economic Inquiry.
The study found that potential migrants to the state of Colorado viewed cannabis legalization as “a positive amenity” that increased their likelihood of moving to the state.
This mirrors earlier numbers with respect to tourism to Colorado, previously covered by The Seed Investor. One-quarter (25%) of visitors to Colorado between 2013 and 2018 listed “cannabis” as one of their reasons for visiting the state.
Strong (positive) migration rates into a state translate into a rising population, which in turn translates into rising property values.
Support for marijuana legalization by Americans and the use of cannabis and cannabis products by Americans both continue to hit new highs. Cannabis is becoming a new consumer tradition in the United States. Political dinosaurs who stand in the way of (full) legalization risk their own extinction.
This is yet one more reason for current and potential investors in marijuana stocks to not flinch in the face of declining valuations in recent months. Markets are notorious for being fickle and irrational.
Rising interest in cannabis = rising cannabis consumption = rising cannabis revenues = rising cannabis share prices.
There is nothing complicated here. Nearly a century of cannabis Prohibition has artificially created a stellar
investment opportunity. It’s the chance to build what will be a trillion-dollar-per-year global industry (over the long term) from the ground up.
It’s not just cannabis investors who are strongly in favor of cannabis legalization. The American people, in general, continue to become more enthusiastic about (legal) cannabis. And as Americans become more accustomed to legal pot, the number of cannabis investors will also continue to rise.