Recent weeks and months have seen extreme, short-term price gains in stocks offering exposure to new high-growth, but risky, industries – particularly legalized recreational marijuana use, crypto-currencies (e.g., bitcoin), and the technology underlying the crypto-currencies: blockchain. What should investors make of this mania?
In this whitepaper we look at several aspects of these industries, such as their volatility, uncertain regulation, and valuation difficulties, which, for now, make them highly speculative for retail investor portfolios.
