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The 7 stocks in the munKNEE American Cannabis MSO Stocks Index have jumped 51.3%, on average, YTD. The $64,000 question is why.

Why the Index Has Surged

1. On January 18th  a group of 12 state attorneys general sent a letter to the DEA supporting the reclassification of a recommendation by the U.S. Department of Health and Human Services to lower the classification of cannabis under federal law to Schedule III from Schedule I which would allow major U.S. stock exchanges to list MSOs on their exchanges and substantially ease banking requirements for MSO companies,
2. Florida is considering putting the legalization of the sale of adult-use cannabis on the ballot in November’s election and perhaps for
3. the simple reason that investors like to buy stocks that are going up and, finally, the MSOs are rallying.

Performance of Index YTD

Below are the performances of the 7 stocks YTD, along with any recent news, commentary, and/or analysis on each company:

1. Trulieve Cannabis (TCNNF): UP 111.3% YTD
   • recent news, commentary, and/or analysis:
     • Can Marijuana Stocks Rise From Federal Reform Passing
2. Cresco Labs (CRLBF): UP 90.4% YTD
   • recent news, commentary, and/or analysis:
     • Cannabis stocks move sharply higher as details emerge on rescheduling recommendation
3. Ayr Wellness (AYRWF): UP 72.8% YTD
   • recent news, commentary, and/or analysis:
     • AYR Announces Closing Date for Previously Announced Plan of Arrangement
4. Verano Holdings (VRNOF): UP 54.2% YTD
   • recent news, commentary, and/or analysis:
     • Curaleaf, Trulieve, Verano could benefit from marijuana reclassification
5. TerrAscend Corp. (TSNDF): UP 41.1% this week YTD
   • recent news, commentary, and/or analysis:
     • None
6. Curaleaf Holdings (CURLF): UP 32.5% YTD
   • recent news, commentary, and/or analysis:
     • Curaleaf Stock Jumps, Old Risks Remain
7. Green Thumb (GTBIF): UP 22.6% YTD
   • recent news, commentary, and/or analysis:
     • What's Behind the Latest Surge

Summary

The munKNEE American Cannabis MSO Stocks Index has jumped 51.3% YTD.

Caveat

it should be remembered that this hype will likely soon end, as we saw between late August and mid-September last year as the banking bill advanced and then erased most of those gains as the momentum waned. It also happened between September and October 2022 when it jumped considerably amid hopes of legalization. Therefore, judging by history, unless something major happens, there is a distinct possibility that the current hype will likely end soon.

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