Please ensure Javascript is enabled for purposes of website accessibility

Will Canadian Marijuana Stocks Pop on U.S. Legalization?

By Eric Volkman and Corinne Cardina - Feb 15, 2021 at 2:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

They would immediately gain full access to a massive market, after all.

Canadian marijuana companies look south of their border with thirst and envy. That's because U.S. federal law prohibits them from selling product directly to American consumers, except in very rare instances.

Will their fortunes suddenly change when and if cannabis is fully legalized in this country? Longtime Motley Fool contributor Eric Volkman and healthcare and cannabis bureau chief Corinne Cardina explore that possibility in this clip from Motley Fool Live recorded on Feb. 5, 2021.



Corinne Cardina: What do you think about multistate operators and Canadian pot stocks in this context?

Eric Volkman: I think that optimism is well founded. Ultimately, this is only really going one way. You've seen that at the state level. You saw decriminalization and very tentatively: "OK, we can allow certain people who need medical marijuana to access the product, and that seems to be going OK. We don't have stoned-out zombies wandering the streets. Why don't we try full recreational legalization?" And that went well.

It was an incremental thing, because this is America, don't forget. For decades, we had a war on drugs, and marijuana and anything related to marijuana was lumped into that. I think there is still something in the American mentality that says there's something bad or scary or dangerous about this, and to some degree, we have to keep it kind of under control. That's why you see this incrementalism. I think that's just going to be reflected at the federal level.

Most likely what's going to happen -- almost certainly, I would bet on it -- is that marijuana will be taken off the list of schedule 1 drugs. In other words, the most dangerous and threatening drugs that need to stay illegal [in] the Controlled Substances Act, which is the legislation that regulates this.

Once that happens, again, it depends on the language of any law that's passed. But most likely, what's going to happen is it's going to fall to the states to do whatever they want. Most likely, at least a few of them are going to start to go legal.

Eventually, talking a process of years, talking a process of decades -- again, this is formerly prohibitive America -- I think you will see, if not full and complete legalization in all 50 states and territories, at least fairly comprehensive, fairly close to that. That's what I would expect.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.