Heading into Election Day, the ETFMG Alternative Harvest ETF (NYSEArca: MJ) was up more than 14% over the past week. Some of those gains could be attributed to anticipation of increased cannabis legalization in the U.S.
Today, four states are considering various ballot initiatives to legalize marijuana for medicinal or recreational use. The outcome of votes in Michigan and North Dakota could be important for MJ’s near-term fortunes because those states are considering legalization of recreational cannabis.
“With the prospect of legal cannabis facing voters from Michigan to Missouri, advocates on both sides of the discussion are watching a number of ballot initiatives Tuesday, including full recreational use in two states,” reports CNBC.
MJ seeks to provide investment results correspond generally to the total return performance of the Prime Alternative Harvest Index, which is concentrated in the pharmaceuticals and tobacco industries.
Missouri and Utah are considering ballot measures that would legalize medical marijuana. Utah’s governor could craft a medical marijuana policy for the state regardless of the outcome of Tuesday’s vote.
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“All of the ballot initiatives ‘have a very good chance of passing,’ said Erik Altieri of the National Organization for the Reform of Marijuana Laws, a Washington, D.C.-based non-profit that’s long pushed for an end to the national prohibition against marijuana,” reports CNBC.
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President Trump has recently been increasingly critical of Attorney General Jeff Sessions, stoking speculation Sessions could be replaced. That is widely seen as a boon for marijuana equities given Sessions’ hostility toward legalization of cannabis. California, Colorado, Oregon and Washington are among the states that already legalized weed for recreational purposes.
“Cowen analyst Vivien Azer, who covers the cannabis industry in Canada as well as related companies in the States, told CNBC on Tuesday that one of the most important ballots for Wall Street is in Michigan. She added that investors are also keeping an eye on Florida and Illinois for future cannabis initiatives,” according to CNBC.
Democrats gaining control of the House is seen as a positive for the cannabis industry, though support for increased legalization of marijuana is growing among Republicans as well.
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