Over the last two weeks we have seen a lot of the euphoria in the SPAC market die down as the Nasdaq retreats from all time highs. This is completely understandable as several merger deals have looked lackluster or had valuations that were not very realistic. This lumped together with the over 300 blank-check companies currently trading has made this a much harder market to trade.
But I’m viewing this more as a major and needed reset giving us the ability to get in on hot companies that are being lumped in with the broader SPAC market. On average the SPAC market was trading at a 25% premium and that has been cut back to under 10%. While stock prices have dropped, more money is in this market than ever before and this just means we need to do our due diligence instead of going into deals blindly and waiting for a pop.
Right now, those 300+ SPACs have over $100 billion in capital looking to merge with private companies. Not just that, but even some of the current mergers are trading down near their $10 NAV presenting a great time to acquire shares…
My “dad vibe” must be working overtime these days.
And that’s got me thinking maybe my “chance” conversations with a number of young adults lately is a sign of the times.
Let me explain.
As I’ve been going about my routines in the past, I’ve run into a lot of young people who want to get started in investing, but have no clue how to do so.
I’m talking about folks my daughters’ age who are earning some income and want to invest, but just don’t know where to start.
For instance, once, while skiing at the Kirkwood Mountain Resort near Lake Tahoe, I chatted with three young adults who jumped at the chance to get my advice about investing.
I guess that’s where the dad vibe comes into play…. I told them about a surefire way to make the market work for them as though I were talking to my own daughters.
And it just so happens that this investment advice is good for newcomers and old, particularly investors who’ve been reluctant to jump in when market conditions are so volatile.
That’s why today, I’m going to show you not just the one “starter” investment vehicle I suggest for young adults that can set you on the right track…
But I’m going to recommend three other tech-centric ways to jump start any new investment portfolio right now…