Spac Attack

Let’s talk smack about the pack with a knack for being in the black chasing after the latest SPAC like it was crack, ignoring those giving them flack for being off track with the latest financial hack. SPACs, or special purpose acquisition companies, are everywhere these days. On the most basic level, they offer a more simple way for companies to go public. Should we be worried that celebrities are getting in on the SPAC game? Steven Kurutz in the NYT: Anyone Who’s Anyone Has a SPAC Right Now. “Barry Ritholtz “cited one of his favorite adages, Sturgeon’s law. Coined by Theodore Sturgeon, a science-fiction writer, it holds that ’90 percent of everything is crap.’ A handful of SPACs performed really well over the last two years, Mr. Ritholtz said. That doesn’t mean the Shaq SPAC will, too. ‘What always happens with investors, no matter the asset class or the decade, somebody hits the lottery and everyone else piles in … The SPAC enthusiasm is just investor behavior. People look at these as lottery tickets, and very often they’re not.” (I like to think of SPAC’s as a great tool for people who need more action but don’t understand bitcoin…)

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