Jun 10, 2020 (Baystreet.ca via COMTEX) -- Various exchange traded funds (ETFs) have popped up during the run up in the valuations of these producers and have promptly sold off, as investors increasingly showed their concerns around long term profitability in this sector by hitting the sell rather than bid on the broader sector.
In this article, I'm going to touch on the bull-and-bear case for owning an ETF like the Horizons Medical Marijuana Life Sciences ETF /zigman2/quotes/208856346/delayed CA:HMMJ -5.02% , which tracks this sector.
Recreational use has not grown to the degree initially expected (as I indicated many times was obvious before), however, good growth prospects on the demand side of the equation still exist today. If this sector can trim supply in the near term to balance out the glut, we could indeed see a more profitable sector down the road.
Positioning one’s portfolio too heavily in the highly speculative growth stocks such as small Canadian cannabis producers right now is simply broadly viewed as imprudent heading into a recession, a view I take as well.
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