Matt Carr said while he doesn’t expect to see federal legalization anytime soon, a Biden presidency will be good for cannabis in the US.
While the US presidential election result took some time to be determined, cannabis has been declared a big winner in the most recent American vote.
Matt Carr, chief trends strategist at the Oxford Club, spoke with the Investing News Network about the state of cannabis investment following a turbulent week of results from the race.
Joe Biden is now projected to become the next US president, defeating Donald Trump as the incumbent. Even though Biden hasn’t expressed full support for cannabis legalization, his running mate Kamala Harris has stood in favor of policy reform, which is expected to help the overall US cannabis industry.
Carr was speaking last Friday (November 6), before Biden’s victory was officially called by the media. While he wasn’t sure there would be an official election result anytime soon, he did feel the election already had a theme in place: cannabis.
Heading into the election last Tuesday (November 3), Carr — and the cannabis business community at large — was looking forward to the results for five state ballot measures that could legalize cannabis medically and recreationally. The five states voting were Arizona, Mississippi, Montana, New Jersey and South Dakota; in the end, all five measures cleared, representing more policy victories at the state level.
“That’s been great, that’s exactly what we wanted to see. Those five states have the opportunity to add as much as US$9 billion in new revenue between now and 2025,” Carr said.
Carr explained he was surprised to see stock market moves from Canadian cannabis companies given that these entities still can’t and won’t be able to tap into the US market in the near future.
“Those Canadian companies are really limited in their presence, but since those are the most actively traded because they trade on major US exchanges … those are where investors are turning for this kind of proxy on the results from those states,” he said.
In regards to the possibility of a sweeping federal legalization framework in the US under a Biden presidency, a move that could allow Canadian producers to enter into the gigantic market, Carr isn’t so sure it’ll be an immediate item for Biden and Harris to look into.
“I think you’re going to continue to make these inroads towards some change at the federal level; we already see at the state level that this is working,” Carr said. However, the expert said the success of the state markets makes him think the federal government may continue to leave policy up to individual states and allow for growth to come from that political movement.
Watch the video above to hear Carr’s full thoughts on the outlook for cannabis investments given the new US president. You can also click here for more cannabis videos on YouTube.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.