Welcome to my latest Weekly Weed Report video presentation. The article below is a condensed transcript; the video contains charts and further details.

Christmas came early for the marijuana industry and its investors.

President Joe Biden last week announced a pardon for thousands of Americans convicted of “simple possession” of marijuana under federal law. The move addressed policing practices that disproportionately hurt minorities and renewed momentum for decriminalizing weed on the national level.

Normalization proponents, Democrats, liberals, social equity activists, and marijuana investors cheered the pardon. Many Republicans and libertarians also applauded Biden’s move.

Social conservatives, though, howled in outrage. I saw a chyron on Fox News about the marijuana pardons that read (with the network’s typical subtlety): “Biden Caves to Radical Left’s Demands”.

But for readers of Marijuana Investing Daily, here’s the upshot: After Biden’s announcement, marijuana equities soared across the board. And the momentum seems to have legs.

Biden also urged state governors to implement similar pardons for those convicted of state marijuana offenses, which account for the majority of marijuana possession criminal cases.

The move was announced on October 6 (see tweet).

Biden, in a statement, added: “Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.”

To be clear, no one is currently incarcerated in federal prison solely for simple possession of the drug, but the pardon is designed to assist thousands of people overcome legal impediments to renting a home or finding a job.

“There are thousands of people who have prior Federal convictions for marijuana possession, who may be denied employment, housing, or educational opportunities as a result,” Biden said. “My action will help relieve the collateral consequences arising from these convictions.”

Biden’s move ignited the share prices of several pot sector bellwethers. It should be noted that marijuana legalization is so overwhelmingly popular nationwide, even GOP lawmakers who ordinarily oppose Biden’s policies applauded his pardon.

A political masterstroke…

With the stroke of his pen, Biden created powerful new tailwinds for a marijuana industry that had been in the doldrums due to the overall bear market.

Biden also directed the secretary of Health and Human Services and the U.S. attorney general to review how marijuana is scheduled under federal law. Rescheduling the drug would essentially remove criminal penalties for possession.

Schedule I drugs have no currently accepted medical use and aren’t considered safe to use even under medical supervision. They’re considered to have a dangerous potential for abuse and dependency. Marijuana is currently classified as a Schedule I drug, alongside heroin and psychedelics such as LSD, under the Controlled Substances Act (CSA).

Regardless, states and other jurisdictions have continued to implement policies that conflict with federal law, beginning with the passage of California’s Proposition 215 in 1996.

By ordering a review of marijuana’s federal scheduling, Biden gave new impetus to the various bills pending in Congress that aim to deschedule marijuana.

WATCH THIS VIDEO: 10 Political Catalysts For The Next Marijuana Bull Market

Biden’s announcement represents a shrewd political calculation. The latest polls show that more than two in three Americans (68%) support legalizing marijuana.

With a month to go before the crucial midterm elections, the president is playing to his base. Democratic enthusiasm will be key to the party keeping control of both chambers of Congress, and marijuana legalization is popular throughout the country, especially among Democrats.

Biden also sought to motivate younger voters, who tend to vote Democratic and support marijuana normalization, but typically turn out in low numbers. But it’s not just young liberals he’s aiming to motivate. He’s also appealing to the broader public. Conservative older voters are embracing marijuana as well.

For pot investors, Biden’s pardon is a game-changer.

Editor’s Note: To discuss these marijuana-related issues, I’m holding a special marijuana Town Hall event on November 1, so be on the lookout for an invitation in the coming weeks!

In the meantime, I urge you to read my new book: The Wide World of Weed and Psychedelics. The product of years of painstaking research, my book provides specific, actionable advice on how to pick the best pot stocks. Click here to order your copy.

John Persinos is the editor-in-chief of Marijuana Investing Daily. You can reach him at: mailbag@investingdaily.com

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