I like to view SPACS as synthetic bonds. Bonds are boring so let’s instead describe them a different way. SPACS are loot boxes. You have a chance at some point

I like to view SPACS as synthetic bonds. Bonds are boring so let’s instead describe them a different way. SPACS are loot boxes. You have a chance at some point in the next 2 years that it may open. If you don’t like the opened stock, you can get a refund of 10$ plus interest. If it doesn’t open the same thing occurs. As long as you are buying spacs (not companies that have completed the spac merger) at or below NAV you won’t get burned. You just pay in opportunity cost. If you pay for a pre LOI spac above NAV u are taking on risk and it is expected that you will get burned. Lots of Chamath’s followers over paid for his spacs which ultimately burned them.