The first prediction
In his list of five predictions for 2019 on Monday, Jim Cramer put increased momentum in the legalization of cannabis at the top. According to Cramer, the cannabis industry has garnered a lot of positive attention from US legislators. He stated, “Nearly every time this gets put up for vote, legalization wins,” citing a recent win in the State of Michigan.
Cramer further stressed that Congress, in his view, will be willing to “de-schedule” cannabis as a Schedule 1 drug, which includes cocaine and heroin. He added, “As our politicians realize that this is actually a very popular, very mainstream position.”
If federal legalization happens, it should be a good opportunity for companies (MJ) such as Canopy Growth (WEED), Tilray (TLRY), Aurora Cannabis (ACB), and Aphria (APHA).
What we predicted: A comparison
In our top ten predictions, we listed “developments in the US” and “political messaging” as two key factors to watch closely. Both these items align well with Cramer’s prediction above. However, we added that “we do not expect recreational cannabis to become legal in the US in 2019, but we’ll certainly be watching how the momentum picks up on that front.”
We also wrote that, “given that Canada Prime Minister Justin Trudeau had the legalization of marijuana as one of his campaign promises, we’ll watch whether political leaders around the world adopt a similar approach and how their respective country reacts to such developments.”
Read on to the next part of this series.