The ascension of Donald Trump to the presidency has brought about a wide mix of reactions, not only from the general public but from industry professionals in a variety of sectors. One space that’s had a collection of speculations about Trump’s administration has been the cannabis industry, given that it revolves around a federally illegal substance that’s legal by state guidelines in a number of individual states. The financial component of the industry, namely stocks of publicly traded cannabis companies, remains particularly uncertain.
Here’s how cannabis industry professionals view President Trump’s impact on cannabis stocks:
Frank Lane, President of CFN Media
"Trump's impact on cannabis stocks has been mixed since his election. The new president seems to be a populist more so than a conservative, which bodes well for the industry since more than half of Americans support legalization of the drug. Republicans also seem amenable to respecting states' rights on these matters. However, the appointment of Jeff Sessions as Attorney General could pose some problems, as White House spokesperson Sean Spicer has made some bearish remarks."
Andy Williams, CEO of Medicine Man
"President Trump can have a wide ranging impact on cannabis stocks and the larger market. Investors are watching the moves of the federal government very closely, and hint of movement one way or another will move stocks. We anticipate equal parts volatility and opportunity moving forward."
Lisa Harun, Co-Founder of Vapium
“This administration has sent mixed signals about where it will land on the subject of legalization and enforcement. The feds are unwavering even though the scales are tipping and people are seeing the medicinal as well as social benefits to legalization (Colorado alone brought in $1.6B last year) - all of these things will create an air of uncertainty, poised only for the high risk investor in the US. Financing is still tough to find, but we believe this will pay handsomely in the long term.
You only need to look to Canada where stock prices of two medical marijuana producers, Aurora Cannabis Inc. and Canopy Growth Corp., have advanced 12% and 30% this year, respectively. If you are keen to invest, look north.”
Danny Davis, Managing Partner at Convectium
“Clearly there has been a hiccup in the market as a result of Sean Spicer’s recent comments, Jeff Sessions’ established position and the overall uncertainty of Donald Trump’s general position on the issue. We experienced a huge swing in the stock of one of our investors Singlepoint (OTCP: SING) for a few days; the stock has since recovered a bit. Ultimately I see things stabilizing over the next few months while we await a formal announcement in either direction. Regardless of the outcome, being an equipment only company in the cannabis industry has its perks, either way we are badly needed.”
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer