Cannabis stocks are blazing ahead of Election Day 2020

Investors bullish on legalized weed are sending cannabis company stock prices rising ahead of an election that will determine the fate of a raft of legislation, including the legalization of marijuana.

Voters in Arizona, New Jersey, South Dakota, Montana, and Mississippi are casting ballots that will determine if their states will join the others that have legalized the drug, although such initiatives aren’t recognized at the federal level.

Investors who bet on early poll results that project a Biden/Harris win aren’t just being foolishly optimistic. While the current Republican administration hasn’t taken specific, um, potshots at existing state regulations, the Democrats have a three-part plan for the federal government’s action on cannabis. A Democratic majority, which would be able to enact legislation, would legalize cannabis for medical use, drop it from Schedule 1 illegal narcotics, and support states in setting their own policies.

In an analysis for Yahoo Finance, Canaccord’s industry expert Matt Bottomley rated Columbia Care (CCHWF), Green Thumb (GTBIF), and Curaleaf (CURLF) all strong buys that could see significant gains if Biden is elected.

Each of these stocks was up between 5% and 7% before the close of the market Monday. Additionally, Investopedia is highlighting Canopy Growth Corp. (CGC), Cronos Group (CRON), and Tilray (TLRY) as top performers on the Nasdaq. Each of these stocks was up over 13%, 14%, and 15% respectively, before the closing bell.

Something else to consider is that regardless of which party and ballot measures win, cannabis purchases have gone up through September in the wake of the pandemic, according to a report in Marijuana Business Daily. It is entirely possible that this trend will continue as some citizens use cannabis to self-medicate during and immediately after the election. In a recent poll, a majority of U.S. adults (68%) said they were significantly stressed by the 2020 presidential race.