When a new sector emerges, Wall Street revs up its hype machine. It projects a rosy future, then the public starts getting excited and can’t wait to buy the stock.
Wall Street then does a roadshow and touts the golden future of the company and industry.
A date is set for the initial public offering (IPO), and the public rushes in to buy the stock.
Before you know it, the stock price is soaring. People talk about the industry as if it’s the best thing since sliced bread.
While the public is buying, the insiders are selling. Eventually, the stock price — and the hopes and dreams of the public — get dashed to pieces.
In no time at all, the stock price begins to decline, slowly at first, and then plunges and never recovers. And the public gets taken for suckers once again.
This is a typical Wall Street “rinse-and-repeat” cycle. Over the past few years, we’ve seen the hype machine in action with 3D printers and cryptocurrencies.
A year ago, the hype machine told the public about the enormous riches that stocks would give them. Unfortunately, they never materialized.
Now, a year later, the public — once again — is left with large losses as cannabis stocks have gone up in smoke.
Watch my video below. I’ll explain why cannabis is the latest pipe dream and how to avoid Wall Street’s hype on the cannabis machine.
I’m also going to recommend an exchange-traded fund that will blow your socks off.
Over time, it will make you more money than marijuana stocks could ever make.
In this video, I discuss:
- Why you shouldn’t follow Wall Street’s hype machine if you want to make money.
- The most recent hype: pot stocks.
- Why cannabis investors are losing their shirts right now — and a better, safer buy for you.
Yes, cannabis is a $160 billion industry. But only 20% of it is legal.
Trying to figure out which companies are the winners will take time. And chasing Wall Street’s hype on cannabis — or any industry — is not the way to make money.
That’s why you won’t get a direct pot play from me. It’s like looking for a needle in a haystack.
In my Alpha Investor Report newsletter, I have a different approach to add exposure to the marijuana industry.
I give readers my recommendations on companies that are on the periphery of this industry. They make money while cannabis companies go through their ups and downs.
You see, over my 35-plus years of experience on Wall Street, I’ve developed a sure way to make money in the stock market.
And I want to hear from you.
Do you think I’m all washed up, or do you agree with me? Leave a comment below.
Editor, Alpha Investor Report
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