Two words spoken at the recent White House press conference had quite an impact on the marijuana stocks. Sean Spicer, who is the current press secretary at the White House, said there would be a “greater enforcement” surrounding the federal laws on the matter of sale and use of marijuana under Trump administration.

With this announcement, there were concerns that the marijuana stocks could face an unpleasant impact. The shares of Medical Marijuana Inc., which happens to be one of the biggest marijuana growers in the United States, dropped more than 20 percent as an aftermath of the White House press conference.

However, the immediate market reaction seen may not necessarily be an indicative of the long-term potential.

The real question that lies here is what will be the effect of the “Trump slump” on the marijuana stocks?

The two words -“greater enforcement” – uttered by Sean alarmed investors. However, the other things mentioned at the conference shouldn’t be ignored. Sean said that President Donald sees “a big difference” between recreational and medical marijuana.

He further explained that Trump “understands the pain and suffering that many people go through who are facing, especially terminal diseases, and the comfort that some of these drugs, including medical marijuana, can bring to them.” It is this distinction that will help in evaluating the impact of Trump administration policies and schemes on marijuana stocks.

As of now, 28 states of the U.S. have permitted the legal use of marijuana for medical conditions. Eight states along with the District of Columbia have allowed recreational use of marijuana.

If the Donald administration does exactly as specified by Spicer, the markets in the U.S states, which have legalized only medical marijuana, will not be in jeopardy. However, the problem arises in those states that have also legalized the use of marijuana for recreational purpose. Hence, there is both bad and good news for the marijuana stocks

So, what’s next? Here are a few things that need to be thought thoroughly:

The first being will Trump administration swing into action to pursue the implementation of the federal law against marijuana sale and use. The marijuana stock prices are likely to rebound if no serious steps are taken.

The second relates to the steps that will be taken by the states that chose to legalize marijuana to prevent the federal crackdown. These states may put up a fight with the Trump administration.