Eager for action and hot for the game. The coming attraction, the drop of a name.
Blowin’ and burnin’, blinded by thirst, they didn’t see the stop sign…took a turn for the worst.
– The Eagles, “Life in the Fast Lane”
We are always on the lookout for what inning we are in in the investment cycle of a bull market. One tell-tale sign that the bull run is nearing the ninth inning is observing the products that somehow jump out of the “Adult Swim Only” section and pour into the “Children Under 12 Only” one. Special Purpose Acquisition Companies (SPACs), also known as “Blank Check Companies,” are such a case. The Wall Street Journal and The Financial Times both featured SPACs in articles Friday:
Moreover, last week, Bloomberg News quoted Olympia McNerney, Head of Goldman Sachs SPAC Group, who warned that the market was getting “perhaps too frenzied,” which says something considering how lucrative SPACs are for Goldman.
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