• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt

2

After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'

3

U.S. says deals with Iran for safe Hormuz transit are prohibited

1

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt

2

After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'

3

U.S. says deals with Iran for safe Hormuz transit are prohibited

Pot Stocks Advance as Michigan Voters Legalize Recreational Use

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Bloomberg
Down Arrow Button Icon
November 7, 2018, 11:32 AM ET

The legal U.S. cannabis market just got a little greener.

In midterm elections that saw Democrats gain control of the House and reaffirmed Republican control of the Senate, more states also voted to legalize marijuana. The outcome will help expand a U.S. pot market that could be worth $75 billion by 2030, according to an estimate from Cowen & Co. Pot stocks, led by Tilray Inc., surged on the news.

Michigan became the 10th U.S. state — and first in the Midwest — to legalize recreational pot. Sales there, estimated to start in 2020, could grow to as much as $1.7 billion in the coming years, according to the trade publication Marijuana Business Daily. The total legal U.S. market is expected to hit about $11 billion in sales in 2018.

With Michigan voting to legalize adult use, neighbors like Ohio and Illinois could soon follow suit to help build a market in that region, according to Ken Shea, an analyst at Bloomberg Intelligence.

“Michigan can act as an anchor,” he said. “You could get a cluster effect.”

Long demonized as a dangerous drug, and still considered an illicit substance with no medical use by the federal government, marijuana is increasingly going mainstream as investors pour billions into the industry. Cannabis is now legal across Canada, and U.S. firms are rushing north of the border for public listings and to access capital markets. In the U.S., meanwhile, the steady creep of legalization has companies buying up licenses and expanding operations.

In addition to the recreational market, more states are embracing medical marijuana. Missouri became the latest state to allow medical use, while a proposition in Utah also appeared poised to pass as of Wednesday morning.

Adding two more states with medicinal marijuana would mean almost 70 percent of Americans could have access to the drug for that purpose. Some in the industry see federal legalization of medical marijuana as the best path to ending prohibition in the U.S., which has held big banks and institutional investors on the sidelines.

Still, not all states were ready to follow Canada’s lead: North Dakota’s ballot measure to decriminalize marijuana failed. More than 60 percent of Americans support making pot legal, but with cannabis still illegal on a federal level, the politics remain fraught.

Cannabis stocks gained Wednesday, led by Tilray and Cronos Group Inc. Tilray, the largest publicly traded pot stock, gained as much as 9.3 percent, while U.S.-listed shares of Cronos rose as much as 6.6 percent. Aurora Cannabis Inc. and Canopy Growth Corp. gained as well.

In the aftermath of the midterm election, attention in the cannabis industry will turn to Congress and, soon enough, the 2020 presidential election. Democrats in the House may hold hearings on marijuana and pursue legislation that would ease banking restrictions or even end federal prohibition.

It’s unclear if marijuana bills could get through the Republican-held Senate. Nonetheless, pressure will continue to mount on lawmakers to ease restrictions, particularly as more countries move forward with medical cannabis, according to Chris Walsh, vice president of Marijuana Business Daily.

“You’ll see immense pressure for them to do something,” he said. “At some point they’ll realize we’re falling behind.”

About the Author
By Bloomberg
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Several musicians said they were misled about the ‘Great American State Fair’ and dropped out. So Trump is stepping in as the main act
PoliticsDonald Trump
Several musicians said they were misled about the ‘Great American State Fair’ and dropped out. So Trump is stepping in as the main act
By Jesse Bedayn, Collin Binkley and The Associated PressMay 30, 2026
8 hours ago
Oil bosses warn prices will soar in a matter of weeks as inventories near unprecedented lows — ‘I mean really, really low levels’
EnergyOil
Oil bosses warn prices will soar in a matter of weeks as inventories near unprecedented lows — ‘I mean really, really low levels’
By Jason MaMay 30, 2026
8 hours ago
SoftBank plans up to €75 billion investment in French AI centers
AISoftbank
SoftBank plans up to €75 billion investment in French AI centers
By Benoit Berthelot and BloombergMay 30, 2026
10 hours ago
After a judge ordered Trump’s name be removed from the Kennedy Center, president says it will ‘soon be closed, probably never to open again’
LawDonald Trump
After a judge ordered Trump’s name be removed from the Kennedy Center, president says it will ‘soon be closed, probably never to open again’
By Collin Binkley and The Associated PressMay 30, 2026
10 hours ago
U.S. military fires missile into engine room of blockade runner after it ignored more than 20 warnings while trying to enter an Iranian port
PoliticsIran
U.S. military fires missile into engine room of blockade runner after it ignored more than 20 warnings while trying to enter an Iranian port
By Konstantin Toropin and The Associated PressMay 30, 2026
10 hours ago
After Blue Origin rocket explosion, NASA’s entire moon exploration program depends on SpaceX for now as Musk eyes blockbuster IPO soon
Innovationspace
After Blue Origin rocket explosion, NASA’s entire moon exploration program depends on SpaceX for now as Musk eyes blockbuster IPO soon
By Jason MaMay 30, 2026
11 hours ago

Most Popular

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
Economy
Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
By Shawn TullyMay 30, 2026
24 hours ago
After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'
Law
After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'
By Collin Binkley and The Associated PressMay 30, 2026
10 hours ago
U.S. says deals with Iran for safe Hormuz transit are prohibited
Politics
U.S. says deals with Iran for safe Hormuz transit are prohibited
By Jack Wittels and BloombergMay 30, 2026
16 hours ago
Gen Z is rejecting $200 dates and choosing 'solo-maxxing'—and dating apps are taking a hit
Economy
Gen Z is rejecting $200 dates and choosing 'solo-maxxing'—and dating apps are taking a hit
By Sydney LakeMay 30, 2026
20 hours ago
Current price of oil as of May 29, 2026
Personal Finance
Current price of oil as of May 29, 2026
By Joseph HostetlerMay 29, 2026
2 days ago
After Blue Origin rocket explosion, NASA's entire moon exploration program depends on SpaceX for now as Musk eyes blockbuster IPO soon
Innovation
After Blue Origin rocket explosion, NASA's entire moon exploration program depends on SpaceX for now as Musk eyes blockbuster IPO soon
By Jason MaMay 30, 2026
11 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.