Its more like the sector fund argument. If money can move faster than business, weird things happen. On the micro level everyone should invest all their capit

Its more like the sector fund argument. If money can move faster than business, weird things happen. On the micro level everyone should invest all their capital in the stock sector that provided the highest returns last decade / year / quarter / day. Nobody never took a class in school that said to list your possible investments and select anything except the highest return, all things being equal. The problem is on the macro level that sector may not be undercapitalized so dumping the entire financial market into whatever won last time, guarantees a bump followed by crash. Carried to an extreme, imagine a stock market so fluid that every penny of capital in our entire civilization flowed all at once every morning at 9am to the company that provided the highest return yesterday, on the assumption that high returns yesterday means high returns tomorrow. It would be epic to watch, but would not be a very functional financial market. Lets say SPACs are a $10B sized market. And they had essentially $0 investment a couple years ago, a very underserved undercapitalized market. The first investor willing to risk it, can pick the best deal in the entire market, and make absolutely insane returns. The problem is the rest of the world financial market sees that insane return percentage and here comes a tsunami of $100T. It's not going to turn out well when that amount of cash impacts a market that's only $10B in size.