While President Donald Trump hangs fire on rescheduling cannabis, we continue to get signs that support what I believe is the inexorable march towards greater acceptance of cannabis use and legal reform that will help public companies in the space.
We see momentum for cannabis acceptance and reform in the following trends. There is ongoing federal-level evidence that Trump may actually follow through on his campaign promise to reschedule cannabis. There’s ongoing robust international and state-level sales growth. We also see support in ongoing opinion polls and scientific evidence that cannabis has medical benefits.
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Below are five highlights of these trends. For more details on these trends and the companies that will benefit the most, consider subscribing to Cabot Cannabis Investor.
5 Reasons to Own Cannabis Stocks
1. President Trump Continues to Endorse Medical Cannabis
Cannabis stocks soared in late September after President Donald Trump promoted a video on Truth Social suggesting cannabidiol (CBD) should be covered by Medicare. The short clip features Trump and a narrator endorsing wider CBD access for seniors. “Hemp-derived CBD can make them feel better, live longer and improve their quality of life significantly,” says the video. The video was produced by The Commonwealth Project, a Massachusetts-based medical cannabis advocacy group backed by billionaire Howard Kessler.
The positive stock response was a little puzzling. Strictly speaking, hemp-derived CBD has little in common with THC-based cannabis sold by publicly traded cannabis companies, other than that they come from the same plant. So, the stock market response did not entirely make sense.
But investors took it as a reminder that Trump endorses medical cannabis, and is therefore likely to follow through on rescheduling the drug. Trump said on August 11 that he’s considering rescheduling “within the next few weeks,” but so far he has not followed through. Rescheduling, or moving cannabis to Schedule III from Schedule I under the Controlled Substances Act, would be a major catalyst for cannabis stocks since the change would neutralize an IRS rule that prevents cannabis companies from deducting operating expenses.
2. The Majority of U.S. Adults Support Cannabis Legalization
Around 62% of U.S. adults support cannabis legalization and 31% say they used cannabis in the past six months, according to a new survey. Three-fourths of respondents said legalization is a smart way to raise tax revenue, and 73% said cannabis stores strengthen local economies. Around 54% say they would consider investing in a cannabis business. A majority, or 55%, said they would try cannabis if it were legal in their state, and 73% said they think cannabis has health benefits. The data come from the MRI-Simmons 2025 National Cannabis Study.
3. The Global Market for Legal Cannabis Will Nearly Quadruple by 2032
The global market for legal cannabis will nearly quadruple to $141.2 billion by 2032 from $38.7 billion in 2025, according to a new estimate from Persistence Market Research. The growth will be driven by legalization, rising consumer acceptance, and growing demand for medical cannabis for chronic pain, anxiety, and neurological disorders, predicts the study. Europe will be the fastest-growing market, says the report.
4. U.S. Cannabis Sales Continue to Grow
New York cannabis stores sold $214.4 million worth of product in August, a new record. That’s a sharp increase from sales of $161.6 million in July and $153.2 million in June. The growth reflects the increase in store count and strong demand, a state official said. Sales so far this year were $1.4 billion, which means New York could be a $2.2 billion market this year. New York legalized recreational use in 2021.
5. Evidence of the Medical Impact of Cannabis Is Building
A large placebo-controlled, Phase III clinical trial published in the journal Nature Medicine recently found that THC helps reduce back pain.
After 12 weeks, participants taking a cannabis extract reported a 1.9-point reduction in pain, compared to 0.6 for those on the placebo. The difference might not sound like much, but it’s on par with current pain medications, says the study. Participants also reported better sleep and quality of life.
The extract, called VER-01 contains 2.5 milligrams of THC. Participants did not report feeling high. The study was done by Matthias Karst, a professor of pain medicine at Hannover Medical School in Germany. The study is significant because unlike surveys or epidemiological studies, it tested cannabis against a placebo.
These are just a handful of the reasons I’m bullish on cannabis stocks over the long haul. To learn more about the companies I like best and how I’m trading the latest surge in momentum, subscribe today.
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