Buzz Kill: Mike Johnson's Election As New House Speaker Does Not Bode Well For Cannabis Legalization Nor Banking Reform
Portfolio Pulse from Maureen Meehan
U.S. Rep. Mike Johnson's election as the House Speaker is seen as a setback for cannabis reform bills, including the SAFER Banking Act. Johnson has consistently voted against cannabis-related legislation. This development could impact the optimism around the SAFER Banking Act, which was expected to provide financial services access to state-legal cannabis companies. The AdvisorShares Trust AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) is down 13% year-to-date, reflecting the sector's volatility.
October 25, 2023 | 10:35 pm
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The election of Mike Johnson as House Speaker, known for his anti-cannabis stance, could negatively impact the AdvisorShares Trust AdvisorShares Pure US Cannabis ETF (NYSE:MSOS). The ETF is already down 13% year-to-date, and this development could add to the sector's volatility.
Mike Johnson's election as House Speaker could hinder the progress of cannabis reform bills, including the SAFER Banking Act. This could impact the optimism around state-legal cannabis companies, which are a significant part of the MSOS ETF. Given the ETF's current performance and the sector's volatility, this development could further pressure the ETF's price.
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IMPORTANCE 80
RELEVANCE 75