The upcoming elections could be the impetus for cannabis stock improvement
The beginning of a new month alone represents a great opportunity for the cannabis market; however, November brings much more favorable winds. The mid-term elections could significantly affect the chances for certain cannabis reforms that are on the table in Congress. Next week, the US brings together millions of voters to decide on certain measures, and several states are focused on cannabis legalization. The results could generate a lot of positivity among investors, so it is a good time to bet on the best stocks in the market.
So far, there are 19 states that have passed different bills to welcome recreational cannabis. That list could grow as there are another five states with initiatives on the ballot this month. Residents of Arkansas, Maryland, Missouri, North Dakota and South Dakota have an important task and the adult-use cannabis market could be on the horizon depending on their final decisions.
Multi-state operators looking for growth, such as Curaleaf Holdings, could benefit from these votes. This company has a presence in more than 20 states and would likely do what is necessary to place its operations in fresh markets.
Marijuana stocks have rallied sufficiently due to all of these prospects. You need to go back to the federal election two years ago to understand this. When President Joe Biden won the presidency, Horizons Marijuana Life Sciences ETF shares soared 42% for the month, eclipsing the S&P 500 and its 12% return over the same period. If November ends with more states regulating cannabis, many stocks could follow this trend and market investors would be among the first to benefit.