As most of you know, I did sell a few shares to gain a tax loss last week and can't reinvest until the end of January or I lose that loss. After seeing the damage Session's did to the cannabis market today, I couldn't hold back, so I invested in some other cannabis based stocks I was following that were down dramatically as well.
I really don't think Session's can survive in Justice for more than another month or so, and I suspect that Trump didn't try to control what Session's said about cannabis. If I'm right about that, and whoever is appointed next is better informed, I suspect that Justice will take a dramatically different course. In fact, I don't believe Congress won't accept anyone for the position who doesn't clearly indicate it's a State's right issue and they won't touch it. I think their are Congressmen who can hold up the nomination of anyone who doesn't take this approach.
Trump is reveling in how the stock market is up, I doubt if he'll do anything that would bring it down dramatically. That said, I'm surprised that he hasn't taken a pro-cannabis stance for no other reason than how much taxing it would add to fighting the deficit and further spur the market. I'm not suggesting that marijuana stores don't pay taxes, but currently it's a cash and carry industry, so it's impossible to say just how much income is reported. More importantly, if it's legal, just as State's are doing, a tax can be added to each product, just as it is in the sale of alcohol and tobacco, so the biggest beneficiary of legalizing it could be the Federal Govt. Their is no doubt in my mind that if purchasing marijuana didn't require cash, more of it would be sold.
For now, I suspect it will take a week or two before it's recognized that what Session's said will make little or no change, and the entire market should come back to where it was before he sounded off.
Gary
