Escape from growth stocks bubble

I’m almost willing to say that more and more stars align… they sure seem to like the imagery at the very least. Curse or not, we’re in for some really interesting times.

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I heard in a financial debate, don’t remember which one, that one hedge fund is adopting the strategy of investing at IPO time of various Spacs, and selling as soon as the final acquisition is announced.
Simple but effective profit :wink:

SPAC Magic Isn’t Free - Bloomberg explains it fairly well (probably works in incognito)

Summary:

Real-money investors who buy SPACs as a way to invest in an IPO-to-be-named-later are subsidizing hedge funds who buy SPACs for free money.

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A couple of days later… Wall Street’s SPAC sell-off drags on amid fears of a bubble.

In a further hit to SPACs, Palihapitiya, one of the most high-profile SPAC investors, sold his remaining personal stake in space tourism startup Virgin Galactic Holdings for around $213 million.

The biggest risk I see with SPACs is that they introduce companies into the stock market which are not screened the same way than during a classic stock market introduction (and would probably not pass that screening).

Basically another way to circumvene rules and put everyone at risk…

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Nice portfolio, mine looks rather similar :slight_smile: I also like the Dimensional / Avantis ETFs. Out of interest… Why DFAI and not AVDE and DFAU vs AVUS? Purely TER?

I changed my portfolio since then, mainly because the factor exposure of the Avantis core funds is higher:

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