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Is the Horizons Medical Marijuana Life Sciences ETF (TSX: HMMJ) about to Sell Off?

Why I still like the Horizons Medical Marijuana Life Sciences ETF

Written by Jeff Siegel
Posted April 12, 2017

The Horizons Medical Marijuana Life Sciences ETF is up about ten percent since debuting last week on the Toronto Stock Exchange.


Not bad for an ETF that allows you to invest in something that’s illegal.

Of course, you know as well as I do that we’re likely less than five years away from the end of cannabis prohibition in the US, and just about a year away in Canada.

The genie is out of the bottle, and with all the money being made, nothing can shove that defiant genie back in.

But that doesn’t mean that the fear of a federal backlash has disappeared. In fact, just this morning I got an email from a member of my Green Chip Stocks investment community who was warning me that HMMJ was going to sell off.

Well, of course it’s going to sell off a little. Nothing climbs indefinitely. But in terms of long-term sustainability, HMMJ is a pretty solid way to play the booming legal cannabis market, and I have no concerns about letting this one ride.

But the truth is, even after landing six triple-digit gains in the legal cannabis space last year, there are still folks who read my analysis, but never pull the trigger on my buy alerts because, well, they’re scared. And who can blame them?

After all, this country’s attorney general, Jeff Sessions is an outspoken prohibitionist who would be more than happy to put tens of thousands of people out of work, and piss away billions of dollars in tax revenue, just to make a point.

But I don’t think that’s going to happen.

While Sessions’ pimp hand may be strong, Trump’s is stronger, and that guy isn’t going to do anything to interfere with one of the few domestic industries that’s thriving.

That being said, if you want to avoid the risk that comes with investing in US cannabis companies, you can just stick to the Canadian ones. That’s where most of my exposure is. And yes, I’m also benefiting from the early success of HMMJ, which is comprised primarily of Canadian cannabis companies.

I hope you’re getting a piece of this action, too. And if you’re still on the fence about investing in the cannabis space, you should check out my e-book, A Beginner’s Guide to Investing in Legal Marijuana, which you can read more about here:

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