- Cannabis investments continue to be a popular theme for thematic investors the world over.
- Sold as once-in-a-generation investments on changing consumer tastes, most firms are over leveraged fledgling ventures with big promises and negligible earnings.
- Over-extended balance sheets are not an issue per se, particularly when broad legalization and regulatory loosening is taking place.
- But with a macro-environment premised on rising inflation, this sector could be a prime candidate for interest expense downside.
- The sector was never super profitable in the first place – but can it survive an inflationary environment?
For further details see:
CNBS - Amplify Investments Jumps Onboard The Crowded Cannabis Space