Bearish Bets Against Global Marijuana Boom Increase to Record
- Short sales approach $2.1 billion, IHS Markit analyst says
- ‘Stretched’ valuations by any metric seen spurring concerns
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The pool of bearish wagers on a pot bust in increasing.
The total value of short positions in global marijuana-related stocks has climbed to a record approaching $2.1 billion, according to Sam Pierson, an analyst at IHS Markit in Boston. Short sellers have increased their positions amid concern that the sector is overvalued, and it’s becoming easier to find shares available to borrow for companies with a large market capitalization, he said.