Internationally, Israel just became the third country to allow for the export of cannabis. Again, as an investor that signals where the world is headed. When, not if, the Federal government reschedules cannabis will American companies buy out their international counterparts that already have first mover advantage and consumer loyalty? Some promoters and influencers have said words to the effect of it will be a fast process (rescheduling). I could not disagree more. I have not been wrong yet in my predictions on the road to the USA’s ending prohibition so perhaps I am overdue for a misstep in which case I tip my hat to them.
Regardless, I believe that the Federal Government will signal its intent to reschedule so as to give the individual States time to introduce legislation and a regulatory framework. Also, to give banks etc time to prepare and to facilitate the loss in revenue to the IRS. Do not forget, the IRS taxes the income of cannabis companies while simultaneously denying those same companies business tax deductions. Economics 101 will kick in and the overall tax revenue will increase in due course and one also must account for the decrease in costs of enforcement, prosecution, and incarceration once prohibition ends.
From the Retail Investor’s Perspective, is the legal cannabis and hemp industry still ideal? You decide.
The case study that follows also appears in our Canadian edition and you can see for good reason why it appears in both issues. But remember that all of content is for education and awareness purposes only and in no way is to be seen as any kind of legal, health, financial, or investment advice. You and you alone are responsible for whatever investment decisions you make just as the websites we link to or reference are solely responsible for their own content.