"There’s much to enjoy on the ride up but nothing goes up forever" by: John Sample

   We gave back over 10% off the market highs a couple of weeks ago and we have already recaptured half of that back. 
   So much for those predicting a bear market. 
   Don’t get me wrong, a bear market could actually happen. 
   You only have to look at Apple. 
   It is currently trading at a 30 PE and it composes 6% of the S&P 500 stock index. 
   For those bulls on Apple their target prices would push this stock to a 10% level. 
   With such a significant weight on the index, a drop in the stock value would send the indexes plummeting. 
   We all enjoy the ride up, but nothing goes up forever. 
   Never forget that we have been at this bull market for 12 years. 
   That is almost historic.
   As with all things, change comes. One of the latest crazes is the proliferation of SPACs or Special Purpose Acquisition Companies. These companies raise money from small investors and build up a war chest of some $200 million dollars. 
   The concept is for the head of the SPAC to find a private company and take it public. 
   This would take the place of someone like Goldman Sachs underwriting a public offering. Trust me here, the guys putting these SPACs together will be well rewarded with little risk. 
   That is where you, the small investor, comes to the table hat in hand. 
   When the private company goes public then everyone benefits. That is the theory.
   Here is the rub, the company being bought has to sooner or later make some money to make it worth going public. 
   One of these SPACs is behind the public offering of Fisker. 
   Just in case you have forgotten, this was the electric car maker that was going to rival Tesla. 
   It failed miserably. Now they are back for another chance at the pie. Good luck.
   A much more viable option could be the public offering of Open Door, an online real estate company. 
   This company makes cash offers for your home and can close in three days. 
   It is raising capital to allow it to move into more markets and offer a myriad of services related to real estate transactions. 
   I am not saying this is a winner but it does give you an example of how SPACs are going to become a part of investing for some.
   The only thing I would offer here is that change is inevitable and will impact all of us. 
   You can’t stop it and shouldn’t waste the effort trying. 
   Remember though that no one is doing you any real favors when it comes to investing. They can promise all the returns in the world but you are the one taking the risk. 
   Always follow the money. 

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