Some people love them, and some hate them (for the moment anyway).
SPACS, or special purpose acquisition companies, have been among the hottest investments around for much of the last year. And now, the world of SPACs reminds me of the political situation in our country …
Split 50/50 and very opinionated.
Whatever your opinion, there’s no denying that some investors have made a lot of money in SPACs. So, on today’s MoneyLine podcast I continue my deep dive into SPACs that have announced definitive agreements to merge with private companies and bring them public. Most have the same exact pattern — a big rally followed by a selloff of at least 40%.
Half the investing world loves SPACs and thinks they can do no wrong. The other half believes their popularity last year and early this year is simply a short-term fad.
I think it’s crazy to see SPACs as a fad. In today’s show, I explain why and talk about how investing in SPACs requires a different attitude than when buying stocks.
Many of the SPACs trading today are merging with companies that typically would not be going public this early in their life cycles. This is an opportunity to invest even earlier, which is how you make the big money. They are venture capital-like investments that were not available prior to the SPAC Boom.
And before you think you have my opinion nailed down, let me say this is both good and bad. I view SPACs similar to my politics — right down the middle and not agreeing with either side. I’m on the side of making money.
Knowing that there is good and bad, I focus in today’s MoneyLine on a dozen SPACs, including several that look like great opportunities on recent pullbacks. I also will let you know how to invest in SPACs — just like the wealthy venture capitalists.
We talk about some pretty cool areas as well, including eVTOL (flying cars), EV charging stations, 3D printing and more.
Be sure to check out the new MoneyLine. You do not want to miss the list of potential big winners.
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.
