It’s something investors have been teased with more than once already this year: federal legalization of cannabis. For many Americans, it is a decision that is long overdue. Many believed that it would be implemented when the Democrats took back the White House under the Biden administration. Unfortunately with the sudden onset of the pandemic, cannabis legalization fell to the backburner.
Cannabis stocks surged earlier this week as investors bought companies like Tilray (NASDAQ:TLRY), Aurora Cannabis (NASDAQ:ACB), and Canopy Growth (NASDAQ:CGC). The reason? There has been a ton of discussion this week about bipartisan support for incremental cannabis sector reform. While it isn’t full-on legalization, it is a step in the right direction for an industry that is beginning to lag other regions of the world.
While cannabis investors await the decision from the Senate, CBD investors are happily buying shares of the fully legalized industry. Even professional sports leagues like the NBA are coming around on CBD and allowing its players to use oils for pain management. The MLB recently allowed CBD companies to advertise within the league, and player usage has been legal for a few years now. This should only benefit companies like Endexx (OTC:EDXC) which has already branched out into markets like pet CBD care and men’s grooming products. As the stigmas around CBD and cannabis are lifted, these companies should benefit as should their stocks.
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