Yahoo Finance 
Has Horizons Medical Marijuana Life Sciences ETF Bottomed?
Largely considered to be representative of the broader Canadian marijuana industry, Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ) has been hit hard since its inception, losing more than 16% of its value since being introduced on the Toronto Stock Exchange (TSX) in early April. Existing investors as well as potential new investors are wondering if the exchange traded fund (ETF) has indeed bottomed, or if a rebound may be on the horizon due to the ETF bottoming.
On Thursday, Mark Noble, senior vice president and head of sales strategy at the ETF, said publicly that he believes the effects Horizons Medical Marijuana Life Sciences ETF have felt recently with the industry-wide cannabis selloff is indicative of some of the volatility related to the industry and uncertainty with respect to how the Canadian government will roll out legislation on the marijuana industry in 2018.
The industry-wide selloff has hurt many investors who got into marijuana stocks near the top of the bubble. The argument that a lack of clarity has led to the selloff may ignore other key factors investors have taken into consideration with this industry, namely, ballooning valuations based on increasingly hefty growth expectations for an industry which is still in its infancy stage.
With many seasoned investors staying away from the marijuana industry in general (and HMMJ by default) due to the lack of a historical time frame to go on, investors looking to buy into this industry will essentially be speculating on many unknown factors. I don’t do speculation, and for that reason, I don’t do the marijuana industry right now.
