Legalize it
Pot policy progress
Good morning, green-thumbed growers. This is your Stock Market Rundown for April 23rd, 2024. Thanks for hanging out with me. Let’s get started:
TODAY’S TOP STORY: CANNABIS COMPLIANCE
Back in the 1990s, when marijuana was an illicit commodity, the only way to get it was from a sketchy drug dealer with a Motorola pager. And you never knew if you were going to be getting dank loud, or ditch weed.
Well, in the 2020s, marijuana is big business. Bud is grown in greenhouses under clinically-controlled conditions. And whether you’re reaching for Sour Diesel, Green Crack, or Purple Urkle, you can be confident you’re getting quality merchandise.
The mainstreaming of cannabis arrived as the consumption and sale of weed was legalized in states across the country. Over half of Americans now live in a state where recreational cannabis is legal. Even Florida will have legalization on the ballot this year.
That’s led to fortunes being made by savvy entrepreneurs, who’ve exploited their knowledge of seeds, strains, and state laws to set up retail and wholesale businesses.
But because marijuana is still prohibited at the federal level, marijuana-related enterprises don’t have access to the banking system. Federal laws classify marijuana as more dangerous than the opioid fentanyl. In actuality, the most dangerous thing anybody has ever done while high on weed is order a pizza.
Happily, regulators are making moves to loosen the rules, and cannabis banking reform is a Senate priority for 2024. Makes sense, since the US Senate is mostly baby boomers.
Boomers were smoking blunts at Grateful Dead concerts and doing bong hits at Cheech & Chong shows when you were in diapers. Don’t be too surprised if they change the rules just so they can pop a THC gummy at Thanksgiving dinner.
SO WHAT ELSE IS GOING ON?
Honda will launch electric vehicles in China by 2027, under the brand name “Ye”. Kanye West was unavailable for comment.
The Magic Kingdom is becoming an empire. Disneyland Resort in California just got approval for an expansion plan that will cost $1.9 billion over the next decade. Given how much money Disney is losing in its streaming business, adding a few more gift shops can’t hurt.
Adidas beat expectations on demand for retro-style sneakers, because everybody suddenly wants to look like a soccer player in 1985 (from the ankle down, anyway).
The Fed is still worried that inflation poses risks to the economy. Inflation is like a movie zombie—you might think it’s defeated, but don’t turn your back on it too quickly.
That’s me closing down for the day, team. See you again bright and early tomorrow. Yours in capitalism, The Axe
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