While Digital World Acquisition Corp (NASDAQ:DWAC) is controversial, anybody that can overlook the controversy may want to consider a modest position in DWAC stock.
There will never be a president like President Donald J. Trump. Love him or hate him, he is the embodiment of the American soul — bold, brash and will stomp you on your face if you ask too many stupid questions.
People truly love Trump. He has what I would call the Kiyosaki factor but multiplied by 10. In fact, Trump and Robert Kiyosaki even wrote a book together.
Most importantly, Trump’s messaging probably resonates a lot deeper than you might think.
You may not hear too much vocal support for Trump in public arenas, but you can absolutely bet that the “silent majority” will be much louder if their “wrong” opinions wouldn’t get them fired.
Perhaps that’s the irony of DWAC stock. The man behind the underlying social-media-focused special purpose acquisition company who garnered a reputation for firing people ignominiously is now graciously extending a seat in the boardroom for disenfranchised Americans. And by disenfranchised Americans, I mean — who else? — white folks.
“In fact, in New York state, if you’re white, you have to go to the back of the line to get medical help,” Trump stated at an Arizona rally, alleging racial discrimination regarding the distribution of coronavirus therapeutics.
Never mind that this was a bad-faith argument: it’s a powerful catalyst.
DWAC Stock is Unstoppable
Recently, my InvestorPlace colleague Chris Markoch had an interesting take on DWAC stock. Essentially, one of his arguments was that an objective analysis on news agencies will reveal certain political persuasions.
Markoch stated that Truth Social, the underlying social media platform that will become publicly tradable presuming a successful business combination, may enjoy a robust audience base.
I don’t doubt that sentiment for a second. Frankly, DWAC stock may be unstoppable.
As I said earlier, Trump’s messaging probably resonates far deeper (and wider and longer) than you think. You have to look to the poll beyond the poll.
For instance, few people when asked will admit to discriminatory feelings. So, it’s really difficult to gauge how Americans truly feel about hot-button issues such as race.
My best guess is that Trump is so popular because he takes the simple, anachronistically masculine approach to complex social problems.
Terrorism? Ban scapegoated people.
Immigration issues? Build the wall.
The Best Investment Ever…and Everybody Knows It!
Some critics may point out that I’m basing my bullishness for DWAC stock on unsubstantiated evidence. I’ll freely admit that I don’t have the smoking gun to suggest that Trump is more popular than the polls suggest.
But then, you look at DWAC stock itself. At a time when the S&P 500 is down nearly 7% for the year, the Trump SPAC is up 57%.
Here’s the thing: SPACs stink and I would know. Through my Benzinga columns focusing on initial public offerings, I’ve covered more SPACs than you’ve probably changed underwear.
Time and again, post-business combination, these bad boys tend to nosedive, mainly due to their dilutive profile as Harvard Law School pointed out.
You know, Trump is a bombastic character, but if he were to say that DWAC stock is the best investment ever, I would be hard-pressed to disagree.
He has changed American politics in a way that no one — and I truly mean no one — could have ever imagined.
Ignore him and his SPAC all you want. You as an American have that right. However, you also might be a little bit poorer off for it.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
