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new markets - alternative medicine or simply pleasure

alternative medicine or simply pleasure

Written by Kaspar Huijsman | 7 minutes
FRI 22-02-2019

In a previous column, I wrote about a new development which you can invest in on the stock exchange: the Bitcoin. This time I will be looking at another interesting development: investing in cannabis. In 2017, the following ETF (tracker) was introduced:

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Horizons Marijuana Life Sciences Index ETF – HMMJ

This tracker follows the North American Medical Marijuana Index as accurately as possible, a basket of North American Life Science companies operating significant activities in the marijuana industry.

In this basket there are 20 stocks, with the top five forming approximately half the tracker. It is already possible to invest individually in these companies but this tracker has cannabis as a theme, and you buy the whole basket together.

No longer thinking about the street scene?

This past summer, the newspapers were already writing: "Banks firmly involved in the Cannabis trade". Banks, institutions and entrepreneurs have a fair amount of mortgage loans outstanding backed by cannabis shops as collateral.

With the progress of medical applications and the ever-increasing easing of politics, the theme is very fashionable. We received many requests to include this tracker in our systems on the day of launch. To date, the performance of the tracker hasn’t been spectacular: after a 10% increase in the first few days, the price (at 27 September 2017) was 9.42 CAD, still below the introductory rate.

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Broad Supply

In my view, it is clear that there is an increased availability and heightened number of investment themes traded on the markets. So anyone who sees a future in a particular theme can invest in a transparent, simple and cheap way. The Bitcoin is a good example and this tracker, HMMJ, runs along the same lines. Of course, it is up to the individual investor whether he wants to invest in a particular sector, and equally importantly, if he expects a rise. But the opportunity to act through the regulated exchanges is positive and BinckBank invests in over 200,000 products.

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Conclusion

In addition to traditional investments, there are a lot of developments going on that could be widely used in the future. Electric cars and the Bitcoin were unheard of a number of years ago.  Times have changed and you can now even invest in these products simply through the stock market. With a rising chart like that of the Bitcoin, the question is am I too late? And with a falling graph like the HMMJ, you're doubting whether that market might not be able to make it. Unfortunately, I cannot predict the future, but the fact that there are more markets in which individuals can invest, is a positive development!

 

 


Author

Kaspar Huijsman

Kaspar Huijsman is the director of BinckBank in Spain & Portugal. He has been working for BinckBank for over 16 years now and founded the office in Marbella in 2006. A seasoned expert in investment, he offers seminars throughout Spain and Portugal, explaining how the platform works and how to assess the risks associated with investments.

The information in this article should not be interpreted as individual investment advice.  Although BinckBank compiles and maintains these pages from reliable sources, BinckBank cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this article without prior verification or advice, is at your own risk.  We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks. 

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