The shares of cannabis companies jumped on Monday during early trading as investors cheered President Donald Trump’s endorsement of the use of cannabidiol (CBD) among the elderly.
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CBD is a natural compound from cannabis that helps with pain, anxiety, and sleep without causing the feeling of “highness”. On Sunday, Trump posted on his Truth Social account a video calling for a revolution in senior healthcare through standardized widespread use of CBDs.
‘Most Important Senior Health Initiative of this Century’
The video was made by the Commonwealth Project, an initiative that advocates for the integration of medical cannabis into senior healthcare delivery. The video noted that “older adults are suffering needlessly” and called for the inclusion of CBDs in Medicare coverage, and giving “millions of seniors the support they deserve.”
Furthermore, the video praised as “groundbreaking” the Farm Bill, a legislation that legalized hemp and was signed into law in 2018 by Trump. It noted that the U.S. president “will deliver the most important senior health initiative of this century.”
Following the news, the shares of cannabis companies soared, as seen below, as of 9:00 a.m. EDT. They pared back losses from the closing bell on Friday.
- Tilray (TLRY) — 18.26%
- Canopy Growth (CGC)– 13.43%
- Cronos Group (CRON) — 9.51%
- Aurora Cannabis (ACB) — 13.99%.
Trump Considers Reclassifying Marijuana
President Trump’s tacit endorsement comes weeks after the American leader disclosed that his administration is investigating whether to decategorize marijuana as a Schedule I drug. Medications in this category, under the Controlled Substances Act of 1970, are considered highly dangerous, addictive, and without accepted medical use.
The Trump administration’s move in this regard follows years of clamor for the reclassification of the drug. The Joe Biden presidency made some moves in this regard.
Across the U.S., 45 states have legalized marijuana in some capacity, whether for medical or recreational purposes. However, the drug remains classified as a Schedule I drug under federal laws.
What are the Best Cannabis Stocks to Buy?
The TipRanks Stock Comparison Tool shows how analysts currently rate the stocks of the various companies active in the cannabis industry. Kindly refer to the graphics below.
