It’s official: tomorrow marks the beginning of the Biden administration.
In case you’re new to my email list, I’ve been recommending pot stocks as a great potential investment opportunity in the case of a Biden presidency since before the election took place.
As is usually the case with Democratic administrations, I anticipated that there would be some big expenditures coming down the pipe.
The green market already experienced a surge immediately following the Senate run-off results, and that trend is very likely to continue.
And with Biden’s unveiling of his astronomical $1.9 trillion stimulus agenda last week, we can see that the expenses will be much more than anticipated.
But it doesn’t matter if you’re balancing the national budget or your monthly household budget…
Accounting rules still apply.
If you spend more, you need to make more income.
And that’s where the Marijuana Opportunity Reinvestment and Expungement (M.O.R.E. Act) comes into play.
With a $1.9 trillion price tag, it’s going to be extremely difficult for the guys holding the purse strings to ignore the green, $630 billion elephant in the room. Or should I say cash cow?
The federal coffers will need to be replenished, and the M.O.R.E. Act will likely be one of the primary vehicles used for doing that.
When it was first introduced by Dems last year, most analysts agreed that even if the bill made it through the House, there was a high probability that it would die on the floor of a Republican held Senate.
But now that the Senate is split down the middle, with VP-Elect Harris being the tiebreaker, chances of it being passed have substantially increased.
Political and personal considerations aside — no matter how you feel about marijuana, the demand and the numbers are there.
Over the years, high profile early adopters like Colorado and Nevada have proven that taxing the legal sale of marijuana can be a powerful revenue generator.
Colorado officially surpassed the $1 billion mark in marijuana tax revenue in 2019.
One reason that the MORE act will be difficult for lawmakers to pass up is that it will not only tax the sale of the actual plant at a rate of 5%, but also the sale of marijuana products.
We’ll likely get a much more detailed list of what “products” are fair game if the full bill survives, but there is currently a booming secondary industry of marijuana derivatives and paraphernalia in play at the market.
Meaning that not only will companies who grow and process pot experience skyrocketing sales, but also the companies that produce goods and services in that secondary market.
As we move deeper into this administration’s interpretation of the marijuana question, there will be ample opportunity for more growth for not only these companies, but also savvy investors.
If you’re looking to get into this quickly maturing market, take a look at my PVA service.
I’ve already been recommending some heavy hitting tickers, and my team and I are currently scanning the market for new opportunities.
Click here to get “more” green into your trade account using the power of PVA!