High and Higher: The Money in Marijuana

As Canada gets ready to legalize recreational marijuana on October 17, 2018, you are seeing a surge in cannabis companies being listed on markets, and investor money flowing to those companies. Much of that optimism is being driven by the potential of a big market, which legalized weed will undoubtedly have but not all big markets are profitable or value creating. While this sector is very much a trader's game, where success comes from detecting mood and momentum shifts, there are three possible choices for investors. One is to make a macro assessment of how the sector will evolve and pick a company or two best positioned to take advantage. The second is to buy a cannabis ETF and ride the sector returns to profits. The third is to invest in a non-cannabis company with cannabis segments and hope to profit from the connection. No sure bets, but with enough product sampling, you may not notice your losses!
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