One of the most popular sectors of the markets lately has been SPACs. That’s short for special purpose acquisition companies. That’s a fancy, Wall Street way of describing what has also been known as a “blank check” company.
It works like this: The SPAC goes public, then uses the cash from the proceeds to buy a private business. That merger creates a new company. If it sounds a bit like a convoluted IPO-type process, you’re not far off the mark. But thanks to a robust number of private companies looking for cash, it’s quickly exploded into a $700 billion market. Time will tell if the SPAC boom has the same dangers of the IPO boom of the late 1990s.
Are you betting big on any SPACs?
Hit reply and let us know how your thoughts on the space.
Now here’s the rest of the news:
Biden’s Trumped-Up Rescue Plan Is a Solution Looking For a Problem –John A Tatom, The Hill
“Never let a crisis go to waste.” Instead, truly shock voters with the size of the problem and spend a massive $1.9 trillion to wage war on – economic inequality? [Read Here]
March 04, 2020
What a day in the markets! Who’d have thought that the Fed stepping in and cutting 0.5% off the Fed Funds Rate would have caused the market to sell-off so dramatically.
I can only imagine how Jerome and the rest of the FOMC members must have felt seeing the market rally for a couple minutes before selling off.
Well, I guess it’s back to the drawing board with the Fed.
CNBC’s Jim Cramer said that the Federal Reserve’s emergency interest rate cut makes him even more concerned about the possible economic risks from the coronavirus.
March 04, 2019
“Instead of spending your time thinking about how bad things are, think about how good they will be!”
Everything is Relative
There is a famous saying: “The grass is always greener on the other side of the fence.” At times, human beings are not satisﬁed with what they have. People seem to do well until, unfortunately, they experience a loss. Then, usually, they want to be better — to experience the “green grass.” It’s human nature to always want to be better, to have more. Isn’t that what is meant by the phrase “dream big?” At times, dreaming big might be great; however, at other times one should be thankful for what one has.
Consider the story of the 85 year old grandmother taking her 5 year old grandson, Johnny, to the beach for the ﬁrst time. She was so excited. She bought Johnny a brand new complete outﬁt for his ﬁrst time at the beach: new cap, new swimsuit, new t-shirt, new shoes and a new sand bucket with a shovel.
They walked to the beach holding hands. As they got to the sand, Johnny said, “Grandma, because I can’t swim I won’t go near the water; so I’ll just dig up the sand with my new shovel far from the sea.”
However, Johnny had difﬁculty digging up the hard sand far from the water. Therefore, he said, “Grandma, this sand is too hard. Can I get close to the water where the sand is easier to dig?” Johnny quickly added, “But I promise I won’t go in the water.”
Hesitantly, the grandmother looked into Johnny’s begging big eyes and said, “Okay, but promise you won’t go in the water.”
Johnny screamed with glee, “I promise.” As he was close to the ocean he was having such a good time, digging and digging with ease in the soft sand. Unfortunately, a huge wave came on the shore and swallowed up little Johnny, taking him out to sea.
With her vigilant eyes, watching him from afar, his grandmother screamed, “Oh my God! Oh my God! Help me God!”
Just then, another huge wave thundered onto the beach from the ocean and “spit forth” little Johnny safely back on the shore.
Elated, the grandmother ran toward the boy and tightly hugged her 5 year old grandson. Wiping tears from her eyes she cried out as she looked toward the heavens, “Thank you God! Thank you so much!”
She then looked back down at her little sweet Johnny. She once again quickly looked back at the heavens and screamed, “Hey… Where’s his new cap!?” 😉