Each day I get calls from friends now that begin with:
‘Hi Howard…are you following the $________ SPAC’.
I reply no.
That leads to me getting a pitch.
I am amazed at the variety of walks of life these pitches are coming from. None (ZERO) of them are coming from people who used to call me about stocks.
In a year when e-sports, fantasy sports and sports betting are on everyone’s phone, the stock market has it’s own fantasy sport – SPAC’s.
From the simple…’Buy Any SPAC that is red’, to the ‘$CLA is the next $LAZR and $VLDR, each day the chatter begins the same…people are handicapping SPAC’s for large moves.
I have a pretty good seat for this on Stocktwits as it has unfolded.
After the Virgin Galactic and DraftKings SPAC’s were completed, I expected SPAC’s to be ‘a thing’ but I did not expect the product/tool to become a phenomena.
People of all ages and all backgrounds are handicapping the management teams and the targets of the SPAC’s. Over the last 15 years I have been pitched 100 ‘fantasy stock market’ products and businesses and I am glad I held out for the stock market being the game itself. The market will turn at some point as the supply from all these SPAC’s add a new dimension to the new SPAC Fantasy Stock Market game.
In the meantime, I am thrilled that SPAC’s are speeding up the unbundling of the index world.