Why a ‘blue wave’ in 2020 could set cannabis stocks up to double

market watcher after market watcher claiming a Democrat winning the presidency could spell disaster for stocks, there’s at least one sector that’s desperately cheering for a “Blue Wave” in 2020.

MJ) tumbling 35%, a Democrat in the Oval Office would be welcome news, according to CFRA senior equity analyst Garrett Nelson. 

Interestingly, nearly all of the leading Democratic presidential candidates favor legalizing marijuana at a federal level, which could double the cannabis market, Nelson says. “When you go from an illicit market to a legal market, we try to think about market opportunity,” he tells Yahoo Finance. “The U.S. is about a $50 billion market right now. Over the next 15 years, the market doubles to $100 billion in the event of full legalization.” 

already agreed-upon deal to acquire U.S. cannabis company Acreage Holdings, which boasts licenses to operate in 20 states. The deal’s activation hinges upon the sale of cannabis becoming permissible at a federal level in the U.S. Thus, Nelson’s model projects federal legalization would boost Canopy’s share price by more than 100% to reach $58 a share, provided Canopy can maintain its underlying fundamentals and market share. 

since become executive chairman at U.S. cannabis company Vireo Health, told Yahoo Finance that either full legalization of marijuana at a federal level or a bill that would let states decide legalization for themselves without federal intervention would do more than just set Canopy and other cannabis companies up to double.

“As the states [those companies] are in go from one purpose — medical only — to medical and (recreational,) their market ramps up,” he said, adding that a double or tripling would be his minimum case. “I think they have the best exposure to ready-to-rip markets and under either scenario in 2020, why doesn’t it multiply?”

Pew Research poll, two-thirds of Americans say marijuana use should be legal, while only 8% oppose both medical and recreational marijuana use. ” data-reactid=”21″>Interestingly, the discussion comes at a time when 11 states have approved recreational marijuana use and American voters now overwhelmingly support legalizing marijuana. According to a new Pew Research poll, two-thirds of Americans say marijuana use should be legal, while only 8% oppose both medical and recreational marijuana use. 

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A centerpiece of the presidential campaign

legalize marijuana in his first 100 days in office, to Senator Kamala Harris saying she would direct marijuana tax revenue to marijuana entrepreneurs of color. Only Rep. Tulsi Gabbard and former Vice President Joe Biden stop short of full legalization. 

a banking bill that would allow banks to work with legitimate cannabis businesses in states that have legalized.