Buy The Dip & Watch SPAC BOOM - Rare and obscure for decades, SPACs are now all the rage. So much so that we can no longer avoid the trend.
- Why SPACs shouldn’t be painted with the same broad risk strokes as its predecessors.
- And, our business partner shares Elon’s $1.32 trillion bet. Click here to find out what’s coming July 1.
Recommended Link Every American should pay attention to this Government insider Jim Rickards has just issued a MASSIVE prediction. A prediction that could dramatically change your financial life for the better IF you know exactly what to do. He’s revealing all of the details and how you can position yourself for exploding profits in the video above. | | Lou Basenese Editor and Founder, Trend Trader Daily
Dear Wall Street Daily Reader, Forget seven years in the making… today’s SPAC success story has been 30 years in the making! SPAC stands for special purpose acquisition company. As The Wall Street Journal reports, this “flashiest trend in finance” traces its roots to 1993 — to a pair of law-school pals that created a new way for private firms to access the capital markets and everyday investors. Rare and obscure for decades, SPACs are now all the rage. So much so that we can no longer avoid the trend. Today I want to share two dirty little secrets about SPACs that should help you get up to speed about this trend in no time — and start profiting from it. So let’s get to it… Back To SPAC Basics First things first, let’s make sure everyone is on the same page… SPACs, which are also known as blank-check companies, start their life as “shell” firms — at first, they have no active business operations. Then they raise money to list on a major stock exchange. Their sole purpose is to combine with a high-potential private company. In other words, SPACs are a form of IPO (initial public offering). But with a SPAC, the investors that put up the initial capital have no clue what they’re buying. Or in Seinfeld terms, SPACs are IPOs about nothing! Naturally, such “blind” purchasing leads many to associate SPACs with extreme risk. History doesn’t help here. That’s because the predecessor to the SPAC structure was something called “blind pools.” During the boom times of the 1980s, blind pools were exploited to raise money for a litany of penny-stock frauds. But SPACs shouldn’t be painted with the same broad risk strokes as blind pools. You see, the lawyers behind the first SPAC understood the historical context. So from the start, they incorporated investor protections to prevent fraud. For example: SPAC investors have to approve proposed mergers; they can get their capital back; there are disclosure requirements; and so on. And over the years, the trend has been to increase these investor protections. This has made SPACs much safer than most investors believe. (Hint: That’s dirty little SPAC secret #1.) Put more plainly, a proper “investor first” foundation has been laid for a massive SPAC boom. And make no mistake, we’re living in SPAC boom times right now… Recommended Link America's Death Spiral Begins April 14th? If you’re like most folks, you’re probably wondering how we got here... America’s institutions are rotten to the core. Common sense and human decency are relics of the past. And Americans at each other’s throats. Well, it wasn’t by accident. The prophetic analyst who predicted the subprime mortgage meltdown… the financial crisis of 2008… and Brexit… Says a grand experiment has been conducted on the American people without our consent. And the horrifying endgame is set to arrive on April 14th, 2021… Will you be ready? | | Up, Up and Away As you can see in the first chart below, the number of SPACs ballooned 320% last year, to 248 deals. And less than three months into 2021, we’re already closing in on the 2020 high-water mark. Rest assured, we’re going to see that record shattered. In dollar terms, SPACs have already raised $38.3 billion this year. That’s equivalent to about 65% of all capital raised by IPOs, and up from about only 20% two years ago, according to Dealogic. Typically, a rapidly accelerating trend like this leads to runaway prices and puts investments out of reach for rational investors like you and me. But that’s where the second dirty little SPAC secret comes in… When SPACs Dip, We Should Dip As you know, the market’s been experiencing a wee bit of a pullback. And while no one likes to watch their portfolio values plummet — even in the short term — the beauty of a downturn is it can reset prices in frothy areas of the market. And that’s precisely what’s happening for SPACs… As you can see by following the red and orange lines in the chart below, the prices and market caps of SPACs cratered lower during the recent sell-off. I know this firsthand, as I’ve seen some of my SPAC investments go from being up a respectable 20% to 30% before announcing a merger, to now sitting 40% below my entry price. I’m not freaking out, though. Hardly. And here’s why… The biggest SPAC profits come after an announcement is made. In two waves. And I’ve successfully exploited this reality multiple times already for gains of 99%, 107%, 185%, 202% and 245%. In as little as one day, in some cases. So I’m still way ahead on my SPAC investments… with more profit potential locked-and-loaded. Thanks to the recent pullback, I’m convinced the SPAC market is setting up for another profitable run for tuned-in investors. That’s why, in an upcoming issue, I plan to share my strategy and precise details (for free) on how you can start profiting from this boom. So stay tuned! Ahead of the tape, Lou Basenese Editor and Founder, Trend Trader Daily P.S. Before I sign off, I want to share with you the most exciting new tech opportunity I’ve seen in a long time… Remember when Elon bet it all on Paypal...and made millions? Then, he bet it all on Tesla...and made billions? Well, he’s going all in again. But this time he plans to dominate a market worth $1.32 trillion. Which is exactly why I’m predicting huge returns for investors who get in on this opportunity before July. Click here to learn more. Please note, Trend Trader Daily is not affiliated with Paradigm Press. Louis Basenese is a professional investor, and one of the country’s leading technology analysts. He’s spent the past 20 years analyzing emerging technologies, and developing a proven methodology to consistently profit from them. Lou began his investment career at Morgan Stanley, where he was eventually tasked with directing over $1.5 billion in capital. Based on his proven track record as a financial analyst and investor, Lou became a television commentator on Fox Business and CNBC, and a market expert in the pages of The Wall Street Journal and Business Insider. But ultimately, Lou found he preferred helping Main Street investors like you. By providing ordinary investors with extraordinary research, he discovered that he can help his readers change their financial futures, and change their lives for the better. And that explains why he recently launched Trend Trader Daily. With this new service, Lou can share his research with you on groundbreaking new technologies and emerging sectors — well before he shares this information with the general public on TV, the internet, or anywhere else. So what's one of Lou's top recommendations for right now? Click here to see what he's recommending you do to profit in 2021 and beyond... Recommended Link Newest book from the author of Rich Dad Poor Dad You don’t have to be a landlord (or even invest in REITs) to earn monthly income from real estate. Now you can start building your own real estate empire today -- the “lazy” way -- thanks to over a dozen real estate secrets found in his most recently released book. | | |
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