Marijuana companies are the darling of Wall Street investors, and all this is happening while weed remains federally illegal. The coming marijuana bubble is a particularly strange one, as investors make their plays on the burgeoning industry without knowing what the marijuana market will look like should the drug become federally legal.
Speculation about the future of weed investing comes on the heels of a big week for Tilray, the Canadian weed producer that at one point this week was selling shares for $300. Recreational marijuana will be legal in Canada come October, and in the past year several Canadian weed companies have gone public on US exchanges. The strange truth of weed economics is that these companies are being valued at numbers astronomically higher than the money they actually bring in.
How severe the economic marijuana bubble ends up being remains to be seen, but analysts are already comparing the phenomenon to the cryptocurrency fervor that took over markets earlier this year.
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