I like to think of life like a pendulum.
It swings from an extreme on one end straight through the middle to another extreme on a second end. And back and forth it goes …
Most things in life swing like this.
When applying this thinking to the stock market, there’s one industry in particular that embodies a pendulum — SPACs, or special purpose acquisition companies. So on today’s new episode of MoneyLine, we dive into the world of SPACs and look at how these stocks swung from one extreme earlier this year to the exact opposite extreme today.
Coming into 2021, SPACs were the hottest investment vehicle in years. Forty-seven definitive agreements were announced in the fourth quarter of 2020 — up from only six during the first quarter of the same year — and another 94 were announced in the first quarter of 2021.
In February alone, 44 definitive agreements were announced … but that’s when the investment theme topped out. Since then, the pendulum has swung from euphoria to misery and panic.
That may sound like bad news, but it’s quite the opposite.
This insanely violent swing in sentiment toward SPACs has created a fantastic buying opportunity. And in today’s podcast, I begin a multi-part special in which I identify SPACs that have swung from heroes to zeroes in a matter of months.
As a contrarian, I consider this the perfect time to pounce on the right opportunity.
In the first part of this special, I dive into three FinTech SPACs that have pulled back dramatically from recent highs. Two have direct ties to cryptocurrencies and are a way for investments to gain access to the booming sector.
Then there is one of my favorite long-term disruptor trends — the future of real estate. The home buying process is changing overnight, and there are some very interesting companies that are going public via SPACs that you don’t want to ignore.
Finally, I’ll share the highlight of my day. Topps — a maker of sporting collectibles — announced just this morning that it will go public via a SPAC. Be sure to watch today’s show to get my initial thoughts on the deal and why it could be a cool play on cryptos.
It’s all this and more on MoneyLine.
On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now.
