Cannabis Stocks Fell despite Biden’s Support of Legalization



A weak start

The overall cannabis sector was off to a weak start this week. The weakness was reflected in the Horizons Marijuana Life Sciences ETF (HMMJ), which sank by nearly 1.4%, and the ETFMG Alternative Harvest ETF (MJ), which fell 1.1% in the first half of the day on Monday.

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Worst performers

While most of the cannabis stocks were trading in the negative territory, the worst performers included KushCo Holdings (KSHB), which was trading lower by about 4% around 12:00 PM EST. Two other US-based stocks, Innovative Industrial Properties (IIPR) and Green Thumb Industries (GTBIF) were also in the bottom with a decline of about 3.5% and 1.4%, respectively.

Just last week, presidential candidate Joe Biden showed his support for marijuana legalization, which brought some hope to the cannabis sector in the US. His support was a big shift from his prior stance. Joe Biden had long opposed marijuana legalization. At a recent opioid epidemic forum, Joe Biden appeared to support the anti-marijuana camp.

Some of the other worst performers in the sector included Canopy Growth (WEED), which was trading lower by nearly 1.9%, and Aurora Cannabis (ACB), which was down about 2.1% as of noon.


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