Why last week’s “green wave” election matters… Two leading pot prohibitionists exit Washington… Trump will make cannabis legal nationwide… In the mailbag: “The dumbest thing I’ve heard since Reefer Madness”…
On Election Day, we showed you why the real winner in the midterms wouldn’t be red or blue… but green.
Pot laws were on the ballot in Michigan, Missouri, Utah, and North Dakota.
The only one of these states that voted against legalization was North Dakota.
Michigan made pot legal for adult recreational use. Missouri and Utah – two deeply conservative states – made pot legal for medical use.
And as we’ll show you today, our in-house cannabis investing expert here at Legacy Research believes President Trump will end up making pot fully legal nationwide.
It’s something that could achieve the seemingly impossible – make liberals fall in love with Trump (at least on this hot-button issue).
In its wisdom, the U.S. federal government classed pot a Schedule 1 substance.
It’s something a lot of Daily Cut readers – along with two-thirds of Americans recently surveyed by Gallup – are none too happy with. (See today’s mailbag below for more on that.)
Schedule 1 substances, according to the feds’ guidelines, have a “high potential for abuse” and “no currently acceptable medical use.” Which is odd, given that the U.S. Food and Drug Administration (FDA) – a federal agency – has approved a cannabis-based medicine to treat severe forms of epilepsy.
And pot has some nasty bedfellows in the government’s Schedule 1 classification – heroin, LSD, ecstasy, and methaqualone or “Quaaludes.”
(If you’ve seen the movie The Wolf of Wall Street, it’s Quaaludes that cause Leonardo DiCaprio’s character to collapse on his living room floor… start to writhe about and drool… and wreck his Lamborghini.)
Growers operating legally under their own state laws can’t transport or export it across state lines… have trouble opening bank accounts… and risk prosecution by the feds.
But after the midterms, pot is now legal for medical use in 33 states (plus Washington, D.C.). And adult recreational use is legal in 10 states (plus D.C.).
In other words, most of America has embraced legal pot… despite Washington dragging its feet on outright legalization.
President Trump ordered his drug warrior Attorney General, Jeff Sessions, to step down.
More important, the midterms saw another foot soldier in the feds’ failed War on Drugs lose his seat… Texas Republican Pete Sessions. He also lost his role as chairman of Congress’ House Rules Committee.
Known as the “traffic cop of Congress,” it can block legislation from being debated on the House floor.
This makes it one of the most powerful committees on Capitol Hill.
And since January 2017, Pete Sessions (no relation to Jeff) has used the committee’s powers to block nearly three dozen cannabis-related amendments from being debated in the House.
They would have increased veterans’ access to medical cannabis, for use in treating post-traumatic stress disorder (PTSD).
They would have protected state marijuana laws from federal meddling.
They also would also have allowed pot growers that are operating legally in their states access to banking services (which are denied to them because banks fear it would trigger federal prosecutions).
Now, that’s about to change – big time.
Taking over for Pete Sessions is Massachusetts Democrat Jim McGovern.
He’s made it clear that he’s going to end Sessions’ obstruction of cannabis reform laws. As he told the Boston Globe…
Unlike my predecessor, I’m not going to block amendments for marijuana. Citizens are passing ballot initiatives, legislatures are passing laws, and we need to respect that. Federal laws and statutes are way behind.
Nick heads up our Crisis Investing advisory, where he’s been recommending legal pot stocks since June 2017.
Since then, the 11 stocks he’s added to his “End of Marijuana Prohibition” model portfolio are up 63% on average… with individual gains as high as 94%… 182%… and 455%.
And as Nick told the folks who made the trip to be with us at our first annual Legacy Investment Summit in Bermuda last month, he believes Trump will act decisively to legalize pot. Nick…
Legalizing cannabis fits right in with Trump’s trademark expression. “America First” is more than a political slogan. Trump and his supporters sincerely believe in this. This mindset will be a critical factor for Trump to legalize cannabis.
Hundreds of billions of dollars are at stake. I doubt Trump will want U.S. businesses to sit on the sidelines while foreigners eat their lunch.
As he told us earlier today…
In addition to the positive results in Michigan, Missouri, and Utah… and the changing of the guard at the House Rules Committee… five cities in Ohio decriminalized cannabis.
Meanwhile, Americans elected new pro-cannabis governors in Wisconsin, New Mexico, Illinois, and Minnesota. They are all moving to rapidly legalize. And newly elected Utah Senator Mitt Romney has called for the federal legalization of medicinal cannabis.
Also, Mexico has effectively totally legalized cannabis, after the Supreme Court there ruled that prohibition was unconstitutional. It will become the third country (after Canada and Uruguay) to legalize pot outright. This will exert tremendous economic and political pressure on Washington to change its tune… and quickly.
That they happened together over a matter of days shows the unstoppable momentum of the pot legalization wave we’ve been telling you about. Nick again…
This trend is unfolding even faster than I thought it could under the most optimistic scenarios when I first started recommending legal pot stocks in the summer of last year.
That’s why I’m convinced President Trump has no choice but to legalize cannabis and will do so before he leaves office. It could happen as soon as next year.
We’ve said it before… and we’ll say it again. As the wave of global legalization continues to gather momentum, the market for legal pot is going to explode.
Nick’s top performing pick, cannabis grower Canopy Growth (CGC), remains a great way to play this profit trend.
It’s one of the biggest, best financed pot growers in the world. And at just over $38 a share at writing, it’s still under the buy-up-to price of $50 that Nick has set in the Crisis Investing model portfolio.
Just remember that the legal pot industry is still in its infancy, and pot stocks can be highly volatile. So keep your position sizes small. And treat this as a long-term speculation.
Just like at the end of alcohol prohibition in 1933, not everyone is happy with the end of pot prohibition in 2018.
On Monday, reader Charles H. told us “legalizing marijuana is a very bad idea.” And today, he’s got backup from a fellow reader…
Legalizing marijuana is a very dangerous thing. While I am not opposed to medicinal use of marijuana under very controlled circumstances, I am opposed to legalizing marijuana for recreational use.
Having seen first-hand what happens to young minds once they begin to use pot, convinced me over 40 years ago that the effects were too “mind altering.” Anyone who cares about the youth of America should be opposed as well. For those who say, “Well, I used pot and it didn’t hurt my brain,” how do they know? They can’t possibly know the potential they lost.
China was subdued by the British with opium. I am convinced the same thing is happening to this generation in America. While I may not know the “name of the enemy,” I do know they have their own agenda and it is not a positive one for America.
– Jackie S.
But not everyone’s with Charles…
Better ban tobacco, alcohol, sugar, ribeyes, motorcycles, and running. You could alter your mind and body and get a runner’s high. Comparing this to cocaine or heroin is the dumbest thing I’ve heard since Reefer Madness.
This guy needs to read a history and science book and find some facts. Stop being a mindless sheep carved out of a system that has lied to him his whole life.
– Brad W.
Charles is speaking from ignorance. Alcohol has wreaked havoc with far more people and families than pot ever will. I know quite a few people who smoke on a very regular basis. These are successful people with happy marriages and solid families.
I don’t know of a single person whose life was wrecked by marijuana. But I lost my uncle to alcohol. I also lost many friends and acquaintances albeit via car wrecks.
It boggles my mind that people have these overblown fears of a drug that only mellows people’s minds and brings upon creativity while alcohol gets a free pass. But then, this country is chock-full of brainwashed lemmings.
– Ron B.
Don’t like pot, never used it. But you’re stupid if you don’t invest in it. Yes, the powers that be need the tax money.
– John A.
People will use marijuana whether it is legal or not. They already do this now on a massive scale. Why not legalize it?
Look at the incredible tax revenue the states will take in. The cost to society to prosecute and incarcerate people who use marijuana for personal reasons is prohibitive. There is another huge benefit to society just from the savings of not having to pay for that.
I do not agree that everyone who uses marijuana will end up using heroin or cocaine. This is an oversimplification of the issue. Not to mention the upside for investors who can benefit from the legalization.
– Jeff G.
Where do you stand on this controversial issue? Is pot legalization overdue? Or are Charles and Jackie right in thinking it’s dangerous? Let us know what you’re thinking. We read every email you send us at feedback@legacyresearch.com.
Until tomorrow…
Chris Lowe
November 14, 2018
Lisbon, Portugal
P.S. Tomorrow… we’ll be returning to the core theme on our radar here at The Daily Cut – the obliteration of online privacy… and why it puts your personal liberty in danger.
If you own an Amazon Echo “smart speaker,” you’re going to want to tune in. So look out for tomorrow’s dispatch in your inbox at the regular time (5 p.m. ET).