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How does a SPAC indicate a bubble? They're an alternative to an IPO with very clear pros and cons relative to an IPO itself. Or do you mean to say the number o
by jchonphoenix 6y ago
How does a SPAC indicate a bubble? They're an alternative to an IPO with very clear pros and cons relative to an IPO itself.
Or do you mean to say the number of companies going public indicates a bubble?
- rsj_hn 6y agoyeah, whether we are in a bubble or not is a question of valuation, not specific instruments.
- wyxuan 6y agoI was very disappointed to see that Taibibi piece hit the front page regarding SPACs and how they are a bubble. More companies are going public, and there are even some undervalued SPACs. The key issue is overinflated asset prices, not SPACs.
- YinLuck- 6y agoThe kind of SPACs we are seeing is what indicates something is fishy. Just look Lucid Motors. They have no product -- their first car is still in development... and yet they are about to be a public company with a market cap that matches or exceeds many in the SP500.
- grey-area 6y agoHow does a SPAC indicate a bubble? It's a blank cheque company, common in bubbles, from the first one 300 years ago to today, along with inexplicable valuations (highest in history), a lack of distinction between speculation and investment, ordinary people getting involved, the capitulation of shorts (everyone is long). There are so many signs.