One money manager says he’s been receiving a lot of phone calls from clients about which cannabis stocks to invest in, but is warning about the risks involved in getting into the sector.
“It’s kind of a phenomenon right now,” Rob Tetrault, portfolio manager at National Bank Financial, told BNN Friday. “I’m getting a ton of phone calls…they’re asking me which [cannabis stocks] to buy.”
Tetrault says while clients are eager to get into the sector early, they don’t necessarily understand what the sector looks like and how it works.
“I do see risk,” he said.
“We don’t know the rules of the game yet…and yet people are already assuming they are going to have all those profits.”
He also thinks “the sector is overvalued as a whole” and said he believes the total market cap for recreation marijuana in Canada should be between $6 to 10 billion.
The federal government plans to make recreational cannabis legal by July 2018.