One of the most popular exchange traded funds (ETFs) tracking the broader Canadian cannabis sector (as well as a few publicly traded firms globally which are in a related space, such as fertilizer companies, etc.) is the Horizons Marijuana Life Sciences ETF (TSX:HMMJ).
This ETF generally acts as a pretty decent proxy for the sector overall, and as such, is often used by analysts and investors alike to gauge investor sentiment and momentum trajectory for a basket of weed producers out there.
Since hitting an all-time high of $25.56 earlier this year (the ETF is barely one year old), investors are able to pick up shares of HMMJ below $17 per share, a drop of approximately 35% from the fund's peak.
While many may continue to be bullish on the long-term prospects of this sector, at current levels, I find the argument that an exponential rise in demand will allow for further valuation increases to be unattainable.
I continue to be bearish on this sector, and will be watching the ETF, and the sectors largest players, very closely in the upcoming quarters.
Invest wisely, my friends.