Marijuana stocks may have officially run into a brick wall. According to White House spokesperson Sean Spicer, the administration is gearing up for “greater enforcement” of federal marijuana laws.
“There’s still a federal law that we need to abide by when it comes to recreational marijuana and other drugs of that nature,” Spicer said.
Marijuana investors have been dreading these words from the Donald Trump administration ever since the election. All of the momentum the marijuana legalization movement has gained in recent years is contingent on the federal government looking the other way on enforcement. It is now clear Trump will be doing no such thing.
A federal crackdown on recreational and/or medical marijuana is horrible news for American growers and sellers. However, the crackdown could have a neutral or even positive impact on some marijuana stocks. Investors could use any headline-related dip in these marijuana stocks as a long-term buying opportunity.