SPAC sell-off bruises individual investors. What is the difference between real securities and non-securities like SPACs? When the water moves out you see “who is swimming naked.” SPAC’s are usually driven by “star power” without knowing where the money is going. SPACs have two years to actually start a company. It is a mania. Some are down by 70% to 80%. If you are putting your money into a speculative investment…that is the risk that you run. This is reminiscent of dot-com companies in the late 90’s. How is the SPAC boom similar to cryptocurrencies? It is a speculative buy looking for the big hit knowing there is a good chance you could lose everything. How do you value those kinds of things for someone who is an investor? Is there something tangible there? Investing is being patient and diligent being consistent over time allowing it to compound.
Trump allies promote portfolios that target “Unwoke Investors”. You can get into trouble by investing in criteria based on things other than Financial Criteria. It is a new marketing twist doing things like a “Conservative Portfolio.” It is important to get away from politics and into securities analysis. How does this harm the integrity of the investment business? It brings emotions into the investment process which is never a healthy way to invest. We do not invest based on political views! We talk about how events could affect a business but not based on an emotion of not liking a view.
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