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Just how investible is the cannabis sector?

That’s one of the key questions addressed by our Cannabis analyst Shayne Laidlaw in this clip from a recent edition of The Macro Show. FYI—Hedgeye officially launched our new Cannabis research sector earlier this month.

Laidlaw provides a brief recap of our analyst team’s debut “Black Book” and advises some caution. He explains that investors should pump the brakes on any near-term boom expectations for the industry as a whole, given the rapidly changing regulatory environment in the U.S. and around the world.

“It’s a very dynamic industry and moving in the right direction from a growth perspective,” Laidlaw explains in the clip above. “But this is still 50 separate markets from a state perspective [in the U.S]. There’s nothing done at federal level.”

Laidlaw cites previous states that passed legislation on legalizing recreational marijuana still taking two years or more to actually start selling it.

And while Canada became the most prominent country so far to legalize recreational marijuana at a federal level, Laidlaw adds another caveat to that development:

“It’s the 38th largest population country in the world. So how big is Canada really going to be in the grand scheme of things, long term?”

Bottom line? While there is money to be made in the industry, expectations should be tempered, Laidlaw concludes.

Watch the full clip above for more.