5 SPACs Ready to Bounce Back in 2022
Special purpose acquisition companies (SPACs) have been one of the trendiest investment vehicles in the stock market over the past two years. SPACs are public entities created specifically to merge with private companies to take them public. They offer a workaround for the more traditional initial public offering (IPO) route. A measure of their popularity can be seen in the fact that there were just 59 SPAC IPOs in 2019, but that increased to 248 in 2020 and 613 in 2021.
But a broader economic trend over the past year has led to a steady sell-off of high-growth and speculative stocks. Many of these newly formed SPACs (and the companies they merged with) have been caught up in the sell-off, leaving their investors with significant losses. It's likely some of these SPACs will be considered permanent failures.
However, not all SPAC stocks are created equal. Here are five that have what it takes to potentially rebound in a big way in 2022.
Source Fool.com
