There are now ten States in the US that have legalised recreational marijuana
Michigan has become the 10th US state to legalise marijuana for recreational use.
But voters rejected a similar measure in North Dakota, while the legalisation for medical use passed in both Utah and Missouri.
Cannabis stocks have captured the attention of both Main Street and Wall Street this year.
In August, Constellation Brands, the maker of Corona beer and Svedka vodka, announced a $US4 billion investment in Canopy Growth.
That led to a “green rush” into the sector, with market values of the biggest names more than doubling.
Last month, Canada became the second country to legalise marijuana for recreational use, putting a top on shares prices. But the future remains bright for the sector.
“We believe that the legalisation in Canada offers a road map to invest in the companies that will form the basis of the legal cannabis industry in the coming years,” Jon Trauben, a managing partner at the cannabis-focused Altitude Investment Management, said.
In Australia there are about 30 ASX-listed cannabis stocks — and they are starting to make money according to the latest quarterlies.
That’s attracting interest from some of the big North American cannabis players.
Canopy Growth owns 11.2 per cent of AusCann (ASX:AC8) and Aphria has 25 per cent of Althea Group (ASX:AGH).
Aurora — the world’s second biggest pot stock — is Cann Group’s (ASX:CAN) biggest shareholder with 23 per cent.