Investing Experts Quant buys in cannabis
Sep 11, 2025
Emma Johnston, a Quant Strategist at Seeking Alpha, takes listeners through the intricate world of cannabis investments. She discusses the MSOS ETF's performance amidst regulatory challenges and the shift of buys to sells. The conversation delves into the risks associated with cannabis stocks and highlights potential U.S. picks like Green Thumb. Emma emphasizes a quantitative approach to understanding valuations and navigating market dynamics, while maintaining a cautiously optimistic outlook on future growth in the sector.
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MSOS Is A High-Risk, High-Reward Bet
- MSOS offers concentrated US cannabis exposure with big regulatory and maturity risks.
- That concentration also creates large upside if US de-scheduling or legalization occurs.
Use ETF Metrics Not Dividends For Nascent Sectors
- Evaluate ETFs by momentum, expenses, risk, and liquidity rather than dividends for nascent sectors.
- Use those factors to decide if a speculative sector ETF belongs in your portfolio.
Momentum Can Flip Quickly On Regulatory News
- Momentum drives ETF quant flips quickly in speculative sectors like cannabis.
- Regulatory news can reverse momentum fast and change a buy into a sell.