It's no secret - I'm wild about special purpose acquisition companies (SPACs) right now, and I've recommended several over the past few weeks, most recently VPCC.
Why am I so into them right now? Well, setting aside for a second the whole issue of "pre-IPO rights," (which have the potential to be extremely lucrative) here's why SPACs excite me: When the right management team meets the right innovators, with the right idea and the financial firepower to make it work, it's like pure market magic - your proverbial license to print money. A good SPAC can get regular investors in at the ground floor before the ground floor is even there.
So, if exposure to one great SPAC is magical, exposure to dozens of them must be even better, right?
Wrong. Incorrect. And that's why I'm sending out this video today. Wall Street loves to package popular ideas and themes and bundle them into exchange-traded products, and SPACs are no different.
While there's nothing wrong with ETFs per se, they're not always the way to go, and quite a few of them should be considered radioactive. I've been hearing a lot of buzz around SPAC ETFs, and I've started to get questions about one in particular.
So I'm going to do what I do every week and fill everyone in on why this extremely popular SPAC-derived fund is a terrible idea.Then I'll name the stocks I think everyone should be buying instead.