May 20, 2017
Source: Winnipeg Free Press
By: Joe Schlesinger
Mark Twain might have never actually said history doesn’t repeat itself, but that it instead often rhymes. Yet this statement is an incredibly prescient observation of humanity’s lack of ability to learn from its mistakes… especially when it comes to investing.
Case in point is the present mania over marijuana stocks.
High on the promise of big profits, investors have been pouring billions into companies licensed to produce legal medical marijuana based on the pending legalization of the weed recreationally across the country — which would make Canada the first large, industrialized economy in the world to do so. (Uruguay is the first nation to have legalized cannabis for recreational consumption, by the way.)
Yet a local portfolio manager says what we’re seeing right now is a teachable moment in investor psychology. It’s a phenomenon that has played out countless times before — from the Dutch Tulip Bubble of the 1600s to the Dot-Com Bubble of the late ’90s and early 2000s.
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