The key catalyst for cannabis stocks will be the Drug Enforcement Agency rescheduling cannabis in the U.S. to a less dangerous drug, a Biden administration effort that CIBC analysts John Zamparo and Nishant Rathi say seems likely to happen in 2024.
The rescheduling could happen at any time next year but, perhaps cynically, the analysts say in a note that they expect it to unfold closer to the 2024 U.S. presidential election and for there to be ongoing volatility in cannabis until that time.
The analysts are simultaneously skeptical that any reform in the U.S. will come from the legislature next year.
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