Weed stocks are rallying after Michigan legalizes marijuana for recreational use
Voters in Tuesday’s 2018 midterm elections made Michigan the 10th US state to legalize the recreational use of marijuana.
Utah and Missouri legalized the medical use of marijuana.
Weed stocks were gaining ground early Wednesday after Michigan became the 10th US state to legalize marijuana for recreational use. Voters rejected a similar measure in North Dakota, while the legalization for medical use passed in both Utah and Missouri.
“We believe today, the US is where Canada was 24 months ago — with cannabis legalization a shining beacon in it’s not-too distant future,” George Archos, CEO of Verano Holdings, said.
“Investors believed cannabis stocks were overvalued ahead of legalization, and then the stocks rocketed upward as legalization neared and took effect. Today, some analysts are questioning the valuation of US cannabis stocks. But with legalizations looming – perhaps within the next two years — and more States creating medical and recreational programs, we believe cannabis stocks are on a firm upward trajectory, although there may be a few dips along the way.”