To be honest, I've missed a few bubbles - I mean that in its entirety. Investing in tech stocks in the 90's and cannabis stocks in the 2010's is not something I engaged in.
I've missed out on massive, parabolic gains, and called an "idiot" for not cashing in on these meteoric modern gold rushes, but I've also avoided the cataclysmic declines which come along with holding onto toxic assets with nothing to stand on but conjecture and a "story."
Many exchange traded funds (ETFs) following the cannabis industry will, I believe, fall prey to the same decline technology stocks saw in the early 2000's - maybe worse.
Valuations do not make sense, and haven't made sense as long as I've analyzed these companies, leading me to the conclusion that when everything does hit the fan, it will be quite messy.
The main ETF in the cannabis space, for Canadian investors, is the Horizons Marijuana Life Sciences ETF (TSX:HMMJ). This ETF tracks a basket of Canadian and international cannabis and cannabis-related companies, attempting to give investors a big picture view of the industry, and the growth this industry purportedly will provide.
At this point in time, I would encourage all long term investors to look for other ETFs in value industries, and avoid growth stories at all costs, considering we're about to enter a new investment environment, one which I believe will punish growth investors and reward those willing to seek value.
Invest wisely, my friends.
