What Does Kamala Harris Stepping Up Mean for Cannabis Stocks?
The TDR Three Key Takeaways on Kamala Harris and Cannabis Stocks
- Immediate Market Reaction: The news of Kamala Harris stepping up as the Democratic frontrunner sparked a positive reaction in cannabis stocks.
- Potential Policy Changes Under Kamala Harris: Harris could drive significant cannabis reforms, benefiting the industry.
- Political Uncertainty and Skepticism: Despite optimism, there is skepticism about the actual impact of potential policy changes due to political unpredictability.
President Biden’s announcement that he will not seek re-election has created ripples across various sectors, particularly affecting cannabis stocks, with Kamala Harris stepping up as the Democratic frontrunner. Experts Shadd Dales, Anthony Varrell, and Dan Ahrens discussed these implications on a recent episode of the Trade to Black podcast.
The market responded swiftly to the news, with cannabis stocks experiencing a noticeable uptick. Shadd Dales observed, “Stocks have ripped today. We saw a lot of green, which is a great sign.” This immediate reaction indicates a hopeful market anticipating beneficial policy shifts under a Harris administration.
Kamala Harris is seen as a potential advocate for the cannabis industry. Anthony Varrell highlighted her support for criminal justice reform and engagement with cannabis policy changes, stating, “Kamala Harris would be a complete friend to the cannabis industry.” Her presidency might drive forward de-scheduling and legalization efforts, which could significantly boost the sector.
However, the upcoming 2024 election introduces a layer of uncertainty. Varrell cautioned that a potential Trump presidency might hinder cannabis reforms, noting, “If the final ruling is still up in the air, Trump wins the presidency and he gets inaugurated, he can just have his DEA and AG just sit on it.” This highlights the risk of relying solely on federal policy changes.
Despite the optimistic outlook, skepticism remains regarding Harris’s ability to enact meaningful change. Dales shared a common sentiment: “A lot of people still believe that she still won’t get anything done.” This skepticism stems from past experiences where political promises did not lead to substantial action. Varrell echoed this caution, stating that Harris needs to demonstrate tangible progress rather than just rhetoric.
The vice-presidential candidate’s stance on cannabis policy could also play a crucial role. Dan Ahrens pointed out the significance of the VP candidate, suggesting that a strong pro-cannabis VP could further boost market confidence. He noted, “There’s going to be some serious competition for that VP spot.”
Harris’s strong fundraising effort, raising over $100 million within 24 hours of the announcement, could also play a significant role. Dales mentioned this financial aspect, which might translate into a strong campaign platform including cannabis reform.
Kamala Harris stepping up has generated cautious optimism in the cannabis sector, driven by the prospect of her advocating for cannabis reform. However, the unpredictable nature of politics and past policy disappointments temper this optimism.
