Pot Stocks See Best Week Since 2020 on Call to Lower Marijuana Risk Category

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Pot Stocks See Best Week Since 2020 on Call to Lower Marijuana Risk Category
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Marijuana-company stocks rose for a fourth consecutive day Friday and are on track for their best week since March 2020 on optimism that a US Drug Enforcement Administration review will result in a lower risk rating for the drug.

The MJ PurePlay 100 Index was up as much as 4.6% Friday, extending its weekly gain to 29%, its best stretch since March 2020. The Roundhill Cannabis ETF, ticker WEED, is up a a record 45% this week.

A Wednesday recommendation from Assistant Secretary for Health Rachel Levine that cannabis be classified as a Schedule III drug under the controlled substances act lifted industry stocks. The gains continued when the DEA said that it would review its classification for cannabis.

“It also could spur more banks and financial institutions to offer traditional banking services to cannabis companies, reducing their long dependency on cash,” Salisbury said.

 

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