Flushed with stimulus cash and post-pandemic FOMO, a variety of investing fads took hold over the last few years. We had the rise of NFTs, digital currencies, and meme stocks. And after the bubble popped, many of these fads fell back to earth…hard. Now it looks like another vehicle is about to finally pop and go the way of the dodo.
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We’re talking about special purpose acquisition companies (SPACs), also known as blank check companies.
SPACs continue to bleed cash, return investor money, and trade as penny stocks. With the outlook not great for the sector or their investments, it might be time for investors to pack it in and go with steadier fare. Large cap tech stocks—particularly dividend payers—offer a potential solution that comes with more long-term gains.
