Catch Me If You Can

Cannabis is coming for your booze.

Daily Recap

With ~$29 billion in legal sales this year, cannabis is now 11% the size of alcohol (vs. 4% five years ago) and in states where cannabis is legal, alcohol sales growth is under-performing cannabis by 1-1.5% per month, per a new report by TD-Cowen.

They anticipate that cannabis will gain 18 million monthly users and alcohol will lose two million monthly users over the next five years and expanded legalization (such as the accelerated transition in Ohio) will continue to drive this adaptation.

Why the Long Face?

As Virginia’s Republican governor pursues his plan to bring the Washington Wizards and Washington Capitals to Alexandria, the state’s Democratic Senate leader said that her support might be contingent on getting a bill to legalize marijuana sales enacted.

“While some people want sports stadiums…I want the recreational sale of marijuana and I guess we will have to find compromises this session.”

Going Dutch

Cannabis users in two Dutch cities can smoke legally for the first time as authorities roll out a trial that will expand the country’s tolerance of marijuana to full legality.

“Historic moment,” said the health minister on Friday, as he scanned the first box of legal cannabis in the Baron coffee shop in the southern city of Breda, before sliding to the side.

Stocks & Stuff

It was expiration Friday on Wall Street, not that we could tell from the volumes in U.S. cannabis names. A last-day lift helped MSOS close near session highs but the NYSE-listed ETF still ended the week down about 11% (-5% YTD).

We’ll unpack the price action, including an epiphany I had regarding what may have caused Tuesday’s Pain Train, check field position into the weekend, eye some animal spirits, share our final year-in-review and offer some last lick thoughts into year-end.

All that and more, just scroll down.

Note: Subscriptions will be paused Sunday ahead of my year-end digital respite. I wish you and your family a healthy, happy and safe holiday season.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $35M

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