Steep gains and losses in cannabis industry stock have financial experts predicting the sector is headed for bubble status, if not already there.
A bubble occurs when investor demand increases an asset’s price far beyond its actual worth, like the 2000 dot-com bubble that was fueled by investments in Internet-based companies, many of which later crashed.
Related to this story
Assistant Professor Amos Nadler tells The Canadian Press people are far from logical when investing their money and tend to follow the herd.
“The way humans evolved has not optimized us for the environment we’re currently in and that’s what makes us vulnerable,” he says.
The article ran in more than 20 publications, including Canadian Business.
