Cannabis stocks are soaring higher on Tuesday as investors continue to prepare for a Joe Biden presidency.
The jump in cannabis stocks comes after President Donald Trump’s administration formally started the transition process with Biden’s team. This opens up Biden’s team to make use of funds for the transition and further adds steam to stocks that would benefit from his presidency.
So why exactly does this news have Aurora Cannabis (NYSE:ACB), Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Hexo (NYSE:HEXO), and Cronos Group (NASDAQ:CRON) stocks soaring?
To put it plainly, these companies are much more likely to flourish with Joe Biden as president instead of Donald Trump. That’s due to the different administrations’ stances on legalizing marijuana.
In the case of Biden, his current attitude is that the drug should be decriminalized. That’s a change from his previous bearing, but one that marijuana companies are no doubt happy to hear.
The push to decriminalize marijuana at a federal level has been going on for years but hasn’t made many gains under President Trump. With the shift to a Biden presidency, it could finally be time for that to change, which would, in turn, mean a boost for companies in the industry.
Investors boosting marijuana stocks today are likely hoping for a massive boost once Biden becomes president. However, it’s worth noting that both the president-elect and his running mate, Kamala Harris, have both been hard on the substance in the past. If those stances reemerge, it could be bad for stock investors.
Renewable energy stocks also got a boost today.
ACB stock was up 23.3%, TLRY stock was up 14.6%, CGC stock was up 7.3%, HEXO stock was up 12.1%, and CRON stock was up 8.7% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
