2022 is shaping up to be a lousy year for marijuana

The bull market for marijuana has quickly turned bearish in the aftermath of the COVID-19 pandemic. The industry was riding high when much of the country was on lockdown and in the aftermath of the 2020 election, but several developments have poured cold water on their dreams.

There’s now an oversupply in the market that has driven down wholesale cannabis prices, especially in California. More important, experts say, is the realization that even a Democratic White House and Congress can’t deliver on federal legalization.

After the 2020 election “stocks went freakin’ hog wild, because everybody thought, ‘Holy shit, Democrat White House, Democrat Senate, we’ll get legalization,’” Scott Greiper, president of Viridian Capital Advisors, told POLITICO.

Not only is federal rescheduling not coming soon, but Congress hasn’t even made progress on federal banking reform, which seemed like a no-brainer.

In the long-run, prospects are still good. Most experts believe cannabis will eventually be legalized at the federal level. And the number of states embracing medicinal and/or recreational marijuana is only growing. But it sure would be nice to get a win in Congress soon.