Marijuana reform at the U.S. federal level could soon be on the way, as it won't be long before Democrats are in control of the House, Senate, and White House. And that's giving the industry a lot of hope that legislation favorable to marijuana could pass, potentially making the already hot cannabis industry an even more appealing investment opportunity. It could even pave the way for companies in other industries to start jockeying for position, partnering up with cannabis producers before legalization -- which could still be years away.

Cannabis stocks are off to a hot start to the year, but can that momentum be sustained?

Thanks in large part to optimism surrounding the Georgia Senate run-off election results that will give the Democratic Party control of Congress in addition to the White House, cannabis has been one of the biggest winners of the new year, with the valuations of most pot stocks trading around record highs.

Major U.S. cannabis operators Curaleaf Holdings Inc., Trulieve Cannabis Corp., and Cresco Labs Inc. have climbed 19 per cent, 31 per cent and 26 per cent, respectively, in that time. Meanwhile, smaller players have also posted similar gains.

January Shows Momentum For Canadian Cannabis Stocks

The month of January has given substantial gains to marijuana stocks mid-way through the month. As it stands the most gains have been seen in Canadian cannabis stocks to watch like Aurora Cannabis Inc. (NASDAQ: ACB). In fact, ACB stock is up over 44% since the start of 2021. This is due to investor belief that federal reform is highly likely to occur sometime this year.

Put in the work, be disciplined, and consider getting a little exposure in this area to balance out a well-diversified portfolio.

Whether or not you’re personally interested in the use or application of cannabis, there’s no doubt that this market is prepared to boom in the coming years. Strategically adding some stocks to your portfolio could generate healthy returns.

Marijuana Market Overview

To say that there are certain connotations and assumptions associated with the marijuana market would be putting it lightly. Because of the historical treatment of marijuana and various state laws regarding production, sale, and consumption, some look down on this market and/or have reached misguided conclusions on the purpose it serves.

The latest report from the Canadian Centre for Policy Alternatives (CCPA), titled The Golden Cushion, lists Canada’s top-paid CEOs in 2019. On average, the top-100 CEOs made 202 times what the average Canadian worker earned.

A January Rally For Top Marijuana Stocks

Cannabis NB is showing gains for the fourth consecutive quarter and continues to turn a profit.

Unaudited third-quarter results released Wednesday show the Crown corporation posted a net profit of $2.8 million.

That pushes Cannabis NB’s net profit for the fiscal to date to $7.4 million.

“We anticipate ending the fiscal year in a strong position with $10 million in profit,” Lori Stickles, president and CEO of Cannabis NB, said in a statement.

The Crown corporation was plagued by multimillion-dollar quarterly losses in the months after it opened in October 2018.

But things began to turn around in the fourth quarter of 2019-20 when Cannabis NB posted a small profit of $500,000.

Are Cannabis Stocks Good For Long-Term Investing?

The global cannabis market is expected to continue climbing to new heights over the next few years, according to a recent report.

The report from Arcview Group & BDS Analytics, that said that the global cannabis market is expected to reach to $42.7 Billion by 2024.

“That is a true testament to just how popular cannabis is among consumers and the ongoing impact of new markets coming online and maturing,” the report reads. “The possibilities are boundless as political progress opens up more markets across the world, and struggling markets sort out their regulatory framework.”