Synopsis
Even with prices crashing, SPACs have so far been able to keep raising capital. However, their IPOs are no longer massively oversubscribed
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Rising bond yields have been unkind to growth stocks. Their impact on the special purpose acquisition companies has been downright cruel. The SPAC boom has become the Spacpocalypse. Nobody should be surprised.
SPACs are listed cash-shells that merge with private businesses in order to take them public. They’ve become the dominant way for a company to raise equity finance in the U.S. well over 200 new blank-check companies have raised a mind-boggling $70 billion so far this year, according to data compiled by Bloomberg.
Fed policies spark more concerns over market collapse
As money continues to pour into Wall Street, sending the three major markets indexes the Nasdaq, the Dow and the S&P 500 to new record highs at the end of last week, there are mounting warnings that the lights are flashing red, signalling that the speculative bubble may soon burst, with major consequences.
The warnings come from within sections of the financial elite, as well as from financial analysts and media commentators, who are fearful of the consequences of the endless pumping of money by the US Fed and other major central banks into the financial markets.
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LONDON (Reuters) - From cat food to cannabis, it’s boom time for quirky ETFs offering the chance to punt on niche themes in fast-growth sectors, but their huge gains are unnerving some who see them as another price-inflated asset that may threaten market stability.
FILE PHOTO: A statue of a girl facing the Wall St. Bull is seen in the financial district in New York, U.S., March 7, 2017. REUTERS/Brendan McDermid/File Photo
While Reddit “gamestonks” have grabbed recent headlines, retail investors are also credited with large flows into exchange-traded funds - basically a tradable basket of shares - swelling their assets by more than $1 trillion last year, according to Refinitiv.
LONDON: From cat food to cannabis, it’s boom time for quirky ETFs offering the chance to punt on niche themes in fast-growth sectors, but their huge gains are unnerving some who see them as another price-inflated asset that may threaten market stability.
Synopsis
While Reddit gamestonks have grabbed recent headlines, retail investors are also credited with large flows into exchange-traded funds - basically a tradable basket of shares - swelling their assets by more than $1 trillion last year, according to Refinitiv.
Reuters
And growth has been especially notable in ETFs that aim to harness returns from themes that capitalise on societal and economic trends, from space travel to pet care, and marijuana to medical tech.
LONDON: From cat food to cannabis, it s boom time for quirky ETFs offering the chance to punt on niche themes in fast-growth sectors, but their huge gains are unnerving some who see them as another price-inflated asset that may threaten market stability.