2020 is a big year for pot stocks and the cannabis industry as a whole. In the U.S., 2020 is an election year which means that big things could be in store for cannabis legislation. It should be noted that right now, there are no laws allowing marijuana to be consumed or sold at the federal level. The government has chosen to leave it up to the states to decide whether or not they would like to have marijuana legalized. Because of this, the cannabis industry across the country is quite segmented. As more states become legal, investors continue to search for thriving cannabis companies across the nation. With the success of each company, this will only help them to determine the best marijuana stocks to buy.
In the U.S. there are eleven states plus Washington D.C. that have legalized cannabis for recreational use. Support for legal cannabis in the country has also never been higher. Some studies show that as much as 70% of the public support cannabis being legalized. In addition to this, investors continue to show interest in U.S. focused pot stocks. Because of this, there is a flood of capital coming into the American marijuana market. If more states choose to legalize cannabis, it would be great for the industry and pot stock investors alike. So with that in mind, which states could potentially go full rec in 2020?
Last year, New Mexico tried to pass a bill to legalize recreational cannabis. Once the bill got to the Senate in the state, it ended up sitting for some time before not passing. But, the interest for the bill to pass remains high from the public in the state. For this reason, many believe it is likely that a similar bill would go into circulation during 2020. New Mexico also has the chance to be highly influenced by its large Western cannabis market competitors. Because of its position in the country, it could have a symbiotic relationship with the largest marijuana market in the world; California. Right now, the future of a New Mexican cannabis market remains up in the air.
New York is a major potential market for cannabis. With the largest city in the country by population, the sales that the market could see are potentially astronomical. The state has worked on various types of bills regarding cannabis legislation but to no avail. Last year, Andrew Cuomo, governor of the state, was one of the main reasons that a cannabis bill did not pass. Governor Cuomo and those pushing the bill could not agree on where to split the revenue from the legal cannabis industry. This resulted in no bills being passed regarding cannabis. But, Governor Cuomo’s intentions are clearly aligned with the public’s desire to have marijuana be legal. If it does go through, it could be big news for pot stocks looking for a new industry to work in.
The Florida cannabis market is already ripe with opportunity. Currently, it is only a medicinal marijuana market which makes sense given its conservative population. But, the public there continues to express their desire to see marijuana go fully recreationally legal in 2020. Many pot stocks have already hedged their bets on this market and for good reason. There are currently two campaigns going on that could help push cannabis to become legal in the state by the end of 2020. If the efforts result in a ballot initiative, it would need around 60% of the public to vote in favor in order for it to pass. But, the chances for this still seem quite high given how well the medicinal marijuana market has gone thus far.
These three states are only a few prime examples of what could change in 2020. With elections on the horizon, there are potentially several states that could go fully recreational in the upcoming months. For now, it is still up in the air as to what will happen. But as investors wait for new states to become legal the opportunity to find more pot stocks is increasing.