NKLA - SPCX: SPACs Are The 'Canary In The Coal Mine'

• Special Purpose Acquisition Companies have seen an immense increase in activity over the past year as retail investors have piled into the market.
• The boom in SPAC activity has promoted the launch of SPAC ETFs such as SPCX which allow investors an easy way to buying a wide basket of blank check companies.
• Too much SPAC money chasing too few quality firms may cause an increase in deals at unattractive valuations or with "regulatory patchy" companies.
• The startling growth of SPAC activity may indicate that the bull market is peaking as investors pile into increasingly unproductive investments, including SPACs and, more recently, NFTs.
• Considering the environment as well as poor historical returns of SPACs (largely due to immense promoter fees), investors may want to avoid SPCX for the time being.

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