Today, Canada legalized cannabis. That's right, marijuana, weed, grass or (if you're a narc from 1958) reefer.
By now, every Canadian has tried weed or knows someone who does it. Weed is already mainstream. If you don't believe me, then you're lying or lying in a coma.
But what a lot of hype, from greed in the stock market to fear from the police, and noise from virtually everyone else. Essentially, the federal government has allowed what a lot of people have been doing all along, like eating. So, what's the big deal?
My predictions on the impact of legal cannabis in Canada:
1) Legal weed sales will spike for the next few weeks, perhaps months, as the curious try it for the first time--then drop off. Only some of the newbies will stick with weed, but not all. Dunno how many.
2) The price of weed on the street will drop. Yes, drop by a buck or two per gram. Why? There'll be too much weed, legal or not, on the market. Supply and demand will drive the price down. That's what happened in the legal U.S. states. (Good news, stoners!)
3) Legal weed sales will bottleneck because of government distribution. In Ontario, for example, you can buy legal weed only online through the mail. Really? How many of you buy booze online? Or tomatoes? And Canada Post could go on strike. Easier to call your dude and have him come over just as the pizza arrives.
4) Toking on the streets will see only a modest uptick in the 'burbs, then it'll be winter and only idiots will freeze their fingers toking outside. And who smokes anymore? Vaping is the way to go. (Downtown, there will be zero change in street-toking, because every downtowner is already stoned.)
5) Pot stocks will dive after the first corporate earnings reports. I crunched the numbers. For current stock prices to stay the same, the consumption of weed by Canadians must double.Yes, 200%. I don't care how cheap weed becomes. THIS WILL NOT HAPPEN, especially given reason #3. If you hold weed stocks, watch out in early 2019. If you're thinking of buying weed stock, wait till the industry consolidates, then buy the survivors.
6) Weed is here to stay. The mainstream will continue to accept it, not just recreationally, but medicinally. If you don't believe that THC and CBD treat people with cancer, chronic pain, anxiety and insomnia, then you're smoking crack.