By Al Emid via Iris.xyz

Sky-high stock valuations can be sexy, which is currently the case with pot stocks. And they can become even sexier when it appears as if they will continue to soar.

It seems impossible to watch the business news these days without encountering a segment on the booming cannabis industry, especially with the legalization of marijuana looming in Canada. These news items often feature a company executive with over-the-top enthusiasm for what is to come for a specific cannabis company and the industry in general.

However, we need to make an important distinction here: choosing to smoke pot for recreational or legitimate medical purposes supervised by a doctor, is a separate question from the advisability of investing hard-earned dollars in cannabis stocks, especially given those high valuations.