Cannabis: is it time to buy shares?

• New York is expected to give the green light for approval this year.
• North America Marijuana Index rises 31.5% year to date
• Aphria, Curaleaf and Cresco Labs, among others, are on the buy sign.

In the last elections of November 3, four new states approved the use of this substance, so the list now includes the following states 15 territories. On December 4 the US House of Representatives passed the bill that would remove cannabis from the list of banned substances, the proposal is now in the hands of the Senate, meanwhile and despite state regulations marijuana remains illegal at the federal level.

"This should have been passed years ago," Cuomo said last week about the latest bill to regulate the substance in New York. "I think too many people have been incarcerated, and punished. This is a year in which we need the financingI believe this year will give us the momentum to reach this goal," says the governor.

Wallin, president of Vertical Wellness, a supplier of cannabis-based products, said, "It's obviously a big state, and that matters. The media is based there and so is the financial world. At the federal level, the ball is starting to turn, and some progress should come this 2021 across the country."

But this year it is not only the state of New York that will matter; the sector is optimistic about the prospects of the new Biden administration passing laws that would not only legalize and decriminalize consumption. They would also improve the financial, banking, legal and administrative situation of the companies that work with this substance. 

"State legal environment will drive superior stock performance."

Thus, cannabis regularization would not only benefit cannabis supporters, but could also provide an investment opportunity in the midst of this chaotic 2021. Aaron Gray, analyst at Alliance Global Partners, says: "We believe the momentum of legislation at the state and, more importantly, federal level will continue to be a catalyst for the sector. With respect to companies within our coverage universe, we continue to believe that execution within the current state by state legal environment will drive stock outperformance."