One of the world’s largest stock brokerages is warning investors to steer clear of the ‘Wild West’ of legal marijuana stocks
JEREMY BERKE OCTOBER 2018
- TD Ameritrade is warning investors to steer clear of marijuana stocks.
- The stock brokerage called out Tilray‘s wild swings in recent weeks as an example of “extreme volatility” and dangers to potential investors.
TD Ameritrade is warning investors to steer clear of the burgeoning marijuana industry.
“The marijuana and cannabis industry — sometimes referred to as the Wild West of investing — is littered with high-flyers, potentially over-valued companies, and even scams,” the stock brokerage firm said in a three-minute video posted on its Youtube account.
TD Ameritrade, however, is warning investors to be cautious. They likened the frenzy around prominent marijuana stocks like Canopy Growth and the NASDAQ-listed Tilray to other market bubbles, like the dot-com boom of the early 2000s and the housing market collapse in 2008.
“As marijuana moves from the black market to the stock market, the potential opportunity is easy to see,” the young professional-looking man in the video said. “This excitement coupled with a hazy regulatory outlook means extreme volatility and high-risk for investors.”