FLWPF - The Cannabis Stock Bubble Is Bursting: 3 Things You Need to Know
It's finally happened. After more than three years of the marijuana industry delivering green for their shareholders, the cannabis stock bubble has burst.
While there's no official or concrete definition that describes when the party has ended for a hot industry, I'd call the nearly 50% decline in the Horizons Marijuana Life Sciences ETF -- the first exchange-traded fund focused on cannabis -- over the past six months pretty compelling evidence that something is amiss. The Horizons Marijuana Life Sciences ETF holds more than five dozen pot stocks of various weightings, so it's a pretty good indicator of industry sentiment and performance.
Were that not evidence enough, the month of September generated only six cannabis stocks that rose in value out of the 59 Yours Truly tracks. What's more, just three pot stocks are higher over the trailing 12 months.