Cannabis was legalized this month. What stocks should our reader buy?
Q – There’s a lot of excitement about cannabis stocks these days. Do you recommend any? – Jim H.
A – No. This has become a Wild West market, reminiscent of the tech bubble of the late 1990s. Some of the companies will survive and prosper, while some will go belly-up. At this stage, it’s guesswork as to which ones will thrive.
If you really want to invest in this sector, you can diversify your risk by using an exchange-traded fund (ETF). The largest is the Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ), which has over $1 billion in assets under management. Ask your financial advisor if it is suitable for you. – G.P.