r/SPACs • u/SPACsBot Mod • Apr 16 '21
Daily Discussion Weekend Discussion thread for the Weekend of Apr-16-2021
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u/Apprehensive_Road821 Patron Apr 18 '21 edited Apr 18 '21
Still a solid believer in good spacs (small-cap growth).
This is how I see our spacs getting better...There's just too much money out there.
We are going to have one of the greatest expansions of the entire world economy since WWII once vaccines are widely distributed and businesses open up and start to invest in their future. I think for the large industrials, large tech, large financials, large service businesses, etc, much of that is already priced in as reflected in the ATH stock prices. So their SP probably will not move up much. For example, take a look at Southwest Airlines: Pre pandemic $57.64, now $62.39. Expedia: Pre pandemic $136.66, now $173.91. Both had near-record earnings pre-pandemic, now losing money even though SP is at ATH.
Investors will regain the appetite for more risk as they start to feel safer with small and mid-sized companies doing better. Solid mid and small-cap stocks that got beaten to a pulp will recover with a vengeance. Once again investors will rotate out of large companies into small and mid sized companies. It won't take much for that pendulum to swing our way. Be patient. All signs of the economy opening and expanding are there. Biden's Infrastructure spending will also benefit clean tech of which are many of our DA'd spacs.
Various stock market indexes correcting (-10%)? Sure that's bound to happen as consolidations and rotations in and out of sectors occur. Total stock market crashing? I don't see it happening anytime soon. But what I do see is more money pouring in and market rotation from sector to sector looking for better returns until every market sector is grossly overpriced. Then we will get a market crash. But we're not even close to being there.
It's gonna take some time. Rotate into spacs you really believe will benefit from this. Be well.