Investors need to brace for more political wrangling over cannabis. Some states that already permit the drug could be unexpected holdouts to full federal legalization.
American pot stocks haven’t had a good year. Despite rising in January and February, when the Democrats took control of the U.S. Senate and WallStreetBets traders piled into pot stocks, the AdvisorShares Pure Cannabis ETF —one of the larger funds tracking the sector—is down 23% year to date. Federal bills have been introduced by both Democrats and Republicans in recent months, but haven’t helped share prices as no one expects them to pass.
