Two years ago, in October 2018, Mexico’s Supreme Court ruled that an absolute ban on recreational use of marijuana was unconstitutional, setting the stage for lawmakers to legalize the once-taboo drug.
In early 2021, they’re doing just that.
By a lopsided vote of 316 to 129, Mexico’s Chamber of Deputies voted to legalize recreational marijuana last week. The vote now heads to the Senate this week, where it’s expected to sail through.
Considering that multiple Senate leaders have already expressed intentions to back the Chamber of Deputies, it looks like we are only days away from weed being fully legal in Mexico.
And now… that leaves just the United States of America.
Canada legalized marijuana back in 2018. Mexico is legalizing it right now in 2021. So, by mid-year, the U.S. will be the only North American country without federally legal weed.
That won’t be true forever…
Feeling the pressure of having weed legalized both north and south of them, U.S. lawmakers are making a big push for comprehensives cannabis reform legislation right now.
On Feb. 1, Democratic Senators Cory Booker, Ron Wyden, and Chuck Schumer jointly issued a statement to push forward of decriminalizing weed.
Does that mean federally legal weed is just around the corner for America? No. Legalized marijuana at the federal level is still a long way off.
It does, however, likely mean decriminalization is just around the corner. With that, I suspect recreational marijuana will become quasi-legal in a hurry in most states in the U.S.
Meanwhile, up in Canada, the government is finally figuring out — via looser restrictions, lower taxes, easier access, and wider inventory — how to shift cannabis’ black-market demand into legal channel demand.
For the first time ever, Canada’s legal cannabis sales surpassed illegal cannabis sales in the third quarter of 2020.
If you look at the trend, this appears like an important inflection point wherein the legal market is positioned to take over the illegal market.
Moving over to Europe, countries like Poland and Ukraine are inching closer toward cannabis legalization.
A recent parliamentary survey in France – one of the strictest countries when it comes to marijuana laws – found that 80% of French citizens believe that consumption and production of weed should be allowed.
Down south, South Africa is in the process of legalizing cannabis, too.
I could go on and on. But I don’t think I need to go on any further to illustrate the point that cannabis is becoming globally legal at a rapid pace.
And, perhaps more importantly, where it has been legal for a few years (Canada), the government is figuring out how to get cannabis enthusiasts to buy through the legal channel.
To that end, the bull thesis on pot stocks has never looked better.
Cannabis will one day be as legal across the globe as alcoholic beverages are today.
And — much like the alcoholic beverage market today — that global legal market for cannabis-related products will measure in the hundreds of billions of dollars.
The companies at the epicenter of this Marijuana Boom will be some of the biggest winners in this decade’s stock market.
Which companies are at the top of my list? There are three:
- WM Holding (NASDAQ:SSPK), because its Weedmaps digital listings platform — already cemented as the “Google of Marijuana” — will one day be enormous.
- Canopy Growth (NASDAQ:CGC), because this is the first-mover on the growers’ side of the market, with a talented management team and the multi-billion-dollar backing of Constellation Brands.
- GrowGeneration (NASDAQ:GRWG), because the company has a compelling opportunity to effectively transform itself into the “Home Depot of Pot.”
Those are the top three stocks to buy to play the global cannabis boom over the next decade.
I fully expect each of them to turn into multi-baggers as a new, multi-hundred-billion-dollar economy flowers on the back of growing, selling, and consuming marijuana.
SSPK, CGC and GRWG are my top picks in the cannabis industry and long-term will score investors big returns.
But none are the best growth stock to buy today.
Instead, the best growth stock to buy today is a company that reminds me of a young Amazon (NASDAQ:AMZN). Indeed, I think buying this stock today could be like buying AMZN stock back in 1997 — before it soared thousands of percent.
Which stock am I talking about?
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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