Marijuana companies took a big hit today after news reported that Jeff Sessions will remove federal marijuana policy that prevented U.S. state attorney’s from filing lawsuits against cannabis business that have been approved by their respective states. What this ultimately means to state legal marijuana businesses, no one is sure. However, many investors in the industry decided to bail not willing to take the risk. Do you think marijuana stocks are too risky to invest in?
Marijuana stocks slumped after the Associated Press reported Thursday that US Attorney General Jeff Sessions plans to roll back Obama-era federal policies that paved the way for states to legalize marijuana, citing anonymous sources familiar with the matter. He is expected to announce the policy shift later Thursday.
Several of the largest cannabis growers and other marijuana-related stocks took a hit in trading Thursday, reversing gains earlier in the week from California’s full legalization of recreational marijuana.
The move by President Donald Trump’s attorney general likely will add to confusion about whether it’s alright to grow, buy, or use marijuana in states where pot is legal, since long-standing federal law prohibits it. While mmarijuana continues to be illegal at the federal level, a number of states have voted to legalize and regulate the recreational market in recent years.
Sessions has previously touted marijuana as a “gateway drug,” saying it could lead to use of much more harmful drugs. This has been debunked by numerous scientific studies.
Marijuana stocks have been volatile from the beginning due to the fact that it is a new industry and that cannabis is still illegal on the federal level. The new more aggressive federal marijuana policy will likely make the market all the more volatile.
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