Cannabis ETFs could be the real winners after the presidential election

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The cannabis stock baskets are expected to rise in value, regardless of who wins

The Democrat presidential nominee Joe Biden and vice-presidential nominee Senator Kamala Harris have stated they plan to decriminalize marijuana use and reschedule it at the federal level. Both support the legalization of medical marijuana and that individual states should legislate recreational use. President Trump’s stance on cannabis laws and the legal sales of cannabis are quite different. The Uniform Crime Report from the FBI showed more people were arrested for cannabis in 2019 than for all other violent crimes. The report stated police arrested 545,602 people for cannabis-related crimes in 2019. “That arrest rate is 9% higher than the 495,871 people arrested for violent crimes the same year.”

“Regardless of who wins the White House, US cannabis expansion is expected to continue past November,” said Dan Ahrens, chief operating officer, and portfolio manager at AdvisorShares. Ahrens is also the portfolio manager of the AdvisorShares Pure Cannabis ETF, AdvisorShares Pure US Cannabis ETF, and the AdvisorShares Vice ETF. He commented on the fact that Arizona and New Jersey have ballot proposals where voters will decide on legalizing recreational cannabis use.

“Other states including South Dakota, Montana and Mississippi also have recreational and/or medical marijuana proposals up for vote. Pending New Jersey’s ballot vote, it is widely thought that Pennsylvania and New York could soon approve recreational marijuana use by legislative action, rather than ballot measure, which was how Illinois approved recreational use last year. At the very least, given the populations of Arizona and New Jersey, recreational cannabis legalization would be a huge victory for US cannabis companies,” Aherns said. Cannabis ETF’s should be on your list if you are looking to increase your portfolio, and these cannabis related offerings could provide major growth in the coming years.