Earlier this year, California legalized recreational marijuana use. Now, it seems that California is set to become the largest legal marijuana market in the world. This could mean a lot for marijuana stocks, as well as the potential legal marijuana market for the rest of the country should other states follow California’s example.
If California becomes the world’s largest legal marijuana market, this could mean a boom for weed stocks.
The legal marijuana market makes California a remarkable place for marijuana growers, processors, and sellers, or for individuals who work in adjacent services such as the legal field, marketing, and security for the nascent legal marijuana market. This promising information comes from ZipRecruiter, the online employment marketplace that tracks data. ZipRecruiter has shown that the legal marijuana market has already begun to thrive in major cities like Los Angeles and San Francisco, where the most jobs in the legal marijuana market have been advertised.
ZipRecruiter stated, “When it comes to growth in this industry, we see the most significant growth in states that recently loosened their marijuana laws.”
Although California’s recreational legal marijuana market just recently opened, it is already topping the list of marijuana-related help-wanted postings among states with a legal marijuana market. The metropolitan areas with other large employment centers are Denver and Seattle, located in the longer-established recreational markets of Colorado and Washington, respectively.
After California opened its legal marijuana market, each municipality has also begun to roll out specific regulations.
However, businesses in the legal marijuana market in California are largely interested in opening in locations near large concentrations of consumers. The Consumer Research Around Cannabis published the Cannabis Marketplace Report, in which it states that approximately 5.3 million of the 13.7 million adults over the age of 21 in the Los Angeles Greater Metropolitan Area are consumers of cannabis. This includes consumers of both legal recreational, and medical marijuana. This is promising information for individuals looking for marijuana stocks to buy.
It appears that California is destined to be a significant job creator now that it has a legal marijuana market.
Nevertheless, there are some concerns regarding the Trump Administration that have put a damper on cannabis stocks. Attorney General Jeff Sessions has always been an opponent of legal marijuana. In January, Attorney General Sessions made the legal marijuana industry nervous when he revoked the Cole Memorandum.
The Cole Memorandum protected legal marijuana companies that operated lawfully under state regulations, from federal prosecution.
Sessions also said in a speech to the U.S. Attorney’s Office in Tampa Bay, Florida, that marijuana and other drugs were the big cause of the opioid epidemic, despite significant evidence that this claim is false and dangerous.
For an administration run by a president who campaigned on promises to be a “job creator,” opposition to the legal marijuana market seems at best shortsighted, and at worst hypocritical. According to Ackrell Capital’s assessment in its 2018 Cannabis Investment Report, if the federal government supported full legalization of marijuana, estimates show that a legal marijuana market could develop into a $100 billion market. For individuals who invest in weed stocks, this scenario could result in a lot of winning in the stock market.