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Cannabis Adoption Getting Higher; Analyst Sees It Killing Alcohol Stocks' Buzz

America’s self-medication preferences may be making a major long-term shift. In celebration of 4/20, Cowen analyst Vivien Azer took a look at what could be a coming cyclical upswing for marijuana and a cyclical downswing for alcohol. According to Azer, what’s good for the marijuana business is bad for the alcohol business.

Analyst Commentary

“Of the 5 long-term alcohol cycles that we have seen in terms of per capita alcohol consumption since alcohol prohibition was lifted (and cannabis prohibition was implemented), the latter 3, since 1980, show a notable inverse correlation with cannabis trial and use,” Azer explained.

Recent data suggests the United States may be entering a sixth cycle in which marijuana becomes the preferred option for many Americans.

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