Speculating on SPACs

I’ve researched and invested in a few ETFs and individual stocks and am now looking to diversify with some small investments in speculative stocks.

SPACs have piqued my interest due to potentially high gains but I understand that there is pretty high risk too, especially with so many SPACs on the market.

I would like to know how many people here do or don’t speculate on SPACs, their reasons for doing so and how they go about making their picks. Is it a matter of researching a number and hoping that one will make it to acquisition?

At what stage do you buy SPACs and when do you dispose of them if they do, or don’t merge? What sort of returns have you seen on successful mergers?

Any discussion or views on the subject appreciated.

please consider that the average SPAC is down by around 50% since the IPO

I strongly advise you to stay away from SPACs

1 Like

Thanks David. Yes, noticed that they are poor performers unless they merge. I wonder if the merged SPACs outperform the losses, and whether it is possible as a retail investor to make successful aggregate investments?

I do a lot of SPAC and over all about 2-5% until end of 2021 but haven’t worked out recently but will be lower now. I treat it as better than putting on Skybet only and to have a bit of fun. :+1:

Thanks @Big-g

I trawled the internet and it seems pretty speculative.