Tom Lee, Fundstrat International AdvisorsScott Mlyn | CNBCThe mania after which share-price descent in marijuana shares reminds market professional
Tom Lee, Fundstrat International Advisors
Scott Mlyn | CNBC
The mania after which share-price descent in marijuana shares reminds market professional Tom Lee of two different large crashes, in 2018 and the early 2000s.
The Fundstrat International Advisors managing associate informed CNBC on Monday that the hashish sector’s efficiency seems much like the bitcoin craze and the peak of the dot-com bubble on the flip of the century.
Lee did not go as far as to say {that a} bubble was bursting within the marijuana sector. However he mentioned the trade reminds him of a number of the early web enterprise fashions, which he described as a type of “profitless prosperity.”
“There is likely to be a rising demand, however till somebody can actually seize worth correctly, it may be powerful to be creating one thing that generates sustainable return and fairness,” Lee informed “Closing Bell.”
Some analysts have identified for some time that the pot trade was harking back to bitcoin’s run, starting in 2017.
Just like the marijuana sector, cryptocurrency turned an enormous phenomenon and sparked pleasure amongst buyers. Bitcoin skyrocketed from about $3,600 per coin in 2017 to greater than $19,000 in December of that yr. All through 2018, bitcoin plunged, and it closed the yr at round $4,000. Bitcoin presently has a market value of a little more than $130 billion.
After the bitcoin craze fizzled, some buyers believed…