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4 Medical Marijuana Stocks to Dump Now

They're barely real companies -- and have little to do with the legalization of marijuana, anyway

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There’s nothing chill about marijuana stocks. Marijuana stocks trading over-the-counter — which is always a red flag — are racking up the pennies to post some astonishing gains.

marijuana-stocksAnd each and every one of them is a sell.

This is a speculative bubble based on misunderstanding and ignorance, and it’s going to pop one day.

Marijuana stocks might — might — make sense if you’re a gambler (a gambler with a serious problem). Speculation is a legitimate activity, and many professionals do very well by speculating in currencies, commodities and other assets.

But it’s a well-worn saying on Wall Street that you should never speculate unless you can make it your full-time job.

That’s because if you play blackjack long enough, you lose. The odds are in favor of the house and the laws of probability will catch up to you. The same goes for so-called marijuana stocks.

Even worse for anyone speculating in marijuana stocks is that almost all of them don’t even trade on major exchanges like the NYSE or the Nasdaq, thus they’re not under the types of exchange guidelines that help validate a business and give it transparency. And if marijuana is one day legalized at the federal level, do you really think the giant tobacco companies will forfeit the market to some tiny upstart?

Finally, many of the bullish arguments for marijuana stocks are just plain wrong.

Sorry, but marijuana stocks are not serious. They could even turn out to be pump-and-dump schemes. There are nearly two dozen stocks connected to or trading on medical marijuana. Here’s a look at four of the largest medical marijuana stocks — and why you should run from them without looking back:

Article printed from InvestorPlace Media,

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