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Stockchase Opinions

Mike PhilbrickHorizons Marijuana US Index ETFHMUSTOP PICKNov 30, 2020

Now it has gone through a bit of a corrective phase and there is a massive opportunity in the legal and pharma Marijuana in the US. It is expected to grow from 9 billion to 31 billion by 2042. Most US companies domicile on the Canadian stock exchange. There was broad US support for legalization during the election. Go with the US side.
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BUY
Exposure to the marijuana stocks in the US. A long term secular trade. With the Biden election, there has been more and more states moving to legalize it. A good long term play.
DON'T BUY
Cannabis is done. It had a great run. It's over. And American is too fragmented to see federal legalization of weed. Forget this entirely. In the long run, though, cannabis will make money like all vices do.
BUY

HMUS vs. HMMJ. A monstrous opportunity, but you're going to suffer volatility. Go slow, get in over time, and keep it to a smaller proportion of your portfolio. Market weighted. The US exposure is to companies operating legally, and there can't be any recreational use. With HMUS, you're tapping into a bigger market. For example, Charlotte's Web is planning to sell CBD infused products through Kroeger. This scale dwarfs the whole Canadian market. Valuations are high because of the growth potential. If you're a marijuana investing aficionado, you'd want to own both.