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Cannabis was one of the biggest investing stories of 2018, as the promise of legalization of recreational weed in Canada attracted billions of dollars of from both sides of the border, driving company valuations to levels that had been unfathomable just a year ago. But as we head into 2019, the landscape for investors is changing rapidly. While there are new opportunities — think edibles in Canada and the creeping legalization in the U.S. — there are also bigger risks, as companies must now deliver on their sky high valuations. Amid that uncertainty, the Financial Post asked four experts to share their outlooks for cannabis investing in 2019. Answers have been edited for clarity and space.



Matthew Nordgren, CEO and founder of the Arcadian Fund

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What do you see as the biggest investing theme for the cannabis sector in 2019?

I think 75 per cent of the big stocks are going to underperform in 2019 because they’re overvalued. I would just stick with the big three because the market will move with them. Retail and institutional buyers like those small mid caps and the market thrives on that so I think the market goes back to where it’s always had success — and that’s where you’ve got to focus.