Right now the market is waiting to see what Chuck’s bill will encompass
We now have The 2021 SAFE Banking Act filed in the Senate
We now have CBD Legalization in Supplements, Foods and Beverages filed in the Senate
MJ Legalization/Decriminalization would complete the trifecta
We’ve never seen a CBD Legalization Bill filed in the Senate until yesterday, we’ve never seen The SAFE Banking Act have this much Republican support in the Senate, and we’ve certainly never seen the Senate Majority Leader pushing so strongly for MJ Legalization/Decriminalization with his very own bill
So the potential for the passage of significant federal cannabis legislation hasn’t been this great since Hemp Legalization was passed into law inside of The 2018 Farm Bill
The only bona fide federal Cannabis Legalization Mania we’ve seen happen thus far is The November/December 2017 Canadian Cannabis Mania, which occurred 8 months before the MJ Legalization bill was actually passed in June 2018 — the mania was triggered by the presumption of passage and FOMO due to Constellation Brands taking a 10% stake in Canopy Growth in late October 2017
So it’s possible we could see a repeat of what happened in Canada, with a cannabis mania occurring well before any federal cannabis bill passes the Senate
The mere expectation of passage, or perhaps a catalytic event like a non-cannabis mainstream corporate conglomerate taking a stake in American cannabis (could very well be an alcohol company in a repeat of Constellation Brands), has the potential to trigger a Canada-like expectation-style FOMO Cannabis Mania in 2021
Or it may actually take the passage of a federal cannabis bill through Senate Committees or the Senate Floor itself to trigger a mania
American cannabis investors have been seen it all and been through it all — multiple manias since 2014 as well as multiple years where nothing of significance transpired
My approach to 2021 is one of cautious optimism — I’m thrilled to see all 3 balls in play in the Senate, so the setup is certainly there, but the ultimate proof is in the mania pudding
2021 does share some striking similarities to 2016, with a big rally early in the year, followed by a big consolidation
In 2016, we were fortunate to have a dated catalyst in the form of the November elections, and we experienced an enormous anticipatory mania that preceded them
In 2021, we don’t have a dated catalyst, but we will have 3 cannabis legalization bills filed in the Senate (Banking, CBD and MJ) with a Senate Majority Leader strongly in favor of passing all 3
Charles is in charge, no doubt about it
It’s Chuck’s game from here
Sleek
AI
