While SPACs are aglow with buzz, it’s noteworthy that actual performance returns haven’t matched the hype. According to a Goldman Sachs study, 56 SPACs it analyzed going back to 2018 have underperformed the S&P 500 in the 12 months following the deal.
What’s the overriding message? Proceed with caution.
Ron DeLegge is founder and chief portfolio strategist at ETFguide, and is the author of “Habits Of The Investing Greats.”