High Expectations For Marijuana Stocks – Market Risks Overlooked By Investors

Investors are betting heavily on Canadian marijuana companies, eagerly preparing for its imminent legalization in the country. The shares of the largest Canadian marijuana company, Canopy Growth Corp., for example, began a steep climb in mid-August when the company announced Constellation Brands would pay US$4-billion for a stake in Canopy. Canopy’s shares doubled between mid-August and the end of the month. Marijuana companies raised a record US$4.3-billion as of the end of June,...