What happened to all those SPACs? Earlier this year, special-purpose acquisition companies were market darlings—and symbols of stocks’ building emergent froth. These “blank-check” firms appealed to investors seeking quick, easy windfalls, starting to echo 2000’s IPO boom-a-thon turned bust-a-vortex. Today? Poof! Former President Trump’s new eyeball-grabbing deal aside, SPACs have nearly disappeared due to big blowups and regulatory woes. No surprise—SPACs never held market magic. Viewed correctly, though, they do help foretell stocks’ future. Here is why their about-face is actually bullish.
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