Marijuana Stocks Fall, Will the ‘Buzz Kill’ Continue?

Our Ubika Marijuana Stock Bubble Index of Canadian marijuana stocks has fallen 14% on average in 2017

The tides have turned, and the boy who cried wolf is finally right. The Ubika Marijuana Stock Bubble Index is seeing serious red in 2017, with stocks dropping 14% on average since the start of the year. The decline in the industry is likely due to a number of factors, including: an increasingly crowded sector, which now boasts 226 marijuana stocks; overall investor fatigue for early marijuana stock investors; uncertainty regarding product recalls, with Health Canada cracking down on pesticide use; questions surrounding recreational marijuana use, regulations that are still unanswered; as well as investors becoming more aware of the bubble-like valuations the industry exhibits.

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