Marijuana stocks are a big risk but…

I buy 100 HMMJ Marijuana ETF @17.72 and 100 WEED.TO @ 27.12 (Canopy Growth), with the CAD cash in the virtual portfolio.

The ETF HMMJ was around 8 CAD in september and tripled to more than 24 CAD to go back down to a little more than 16 CAD and looks to be back on track now.

Marijuana stocks have become a hype, real good thrustful information is difficult to find between all the bla bla, a few companies will go bankcrupt in the coming years, it is quite impossible to know who will dominate this market, and growth depends on government decisions.   All these things are reasons to stay far away from marijuana stocks.  But on the other hand, I believe this market will skyrocket, no doubt about it.  So I think it’s important to be part of it, but avoiding all the troubles ahead will be very difficult and almost impossible, so I wouldn’t jump all in.

Canada is the place to be with the best looking stocks like:

Aphria, Aurora Cannabis, Cannabis Wheaton, Cronos Group, Canopy Growth corporation, MedReleaf, Organigram Holdings,… or just buy a mix with Horizons Marijuana ETF.

These stocks are very big risks and they can sink a lot further, some all the way to zero, but… I want to jump on the exotic marijuana train and it feels a little bit like now or never.  In this case, it is a small percentage of the total I spend.

The risk is that within a few years we will remember marijuana in the same way like the internet stocks in 1999.  Every company with “dot com” in its name went up to the sky and back to earth in 2000.  Only a few exceptions survived the crash.  I believe the same will happen with marijuana stocks, so maybe we first need a crash before go all the way for it.  It’s like 3D printing stocks recently.  When they were hot they were all going up, good or bad companies, it didn’t matter, everybody wanted 3D printing.  After the hype they crashed, like 3D Systems, and nobody talked about 3D printing anymore.  However, have a look at Proto labs, they have gone up more than 100% since last year.  Not bad….