WallStreetBets against Wall Street: individuals fall in love with PSPC

Stock marketers have flocked to PSPCs in recent months, allowing those empty shells to raise record amounts of money on Wall Street. A playing field conducive to speculation: before having made an acquisition, these investment vehicles do not have any economic activity.

Since the start of the year, PSPCs have gained more than 6% on average on their first day of listing, far more than the 1.6% gains - already a record - recorded in 2020.

The PSPCs won over the crowds. Since the beginning of the year, stock marketers have fallen in love with these empty shells which have multiplied on Wall Street. One more illustration of the speculative fever that has gripped the American markets: before having made an acquisition, the PSPCs have no economic activity. And yet, retail investors are willing to pay dearly to take part in the adventure.

Since the start of the year, PSPCs have gained more than 6% on average on their first day of listing, far more than the already record-breaking 1.6% average gain in 2020, according to university data from Florida cited by the Wall Street Journal. A partly irrational performance: a PSPC has no activity and does not hold any assets, apart from the funds raised during its IPO with a view to carrying out an acquisition or a merger. Investors trust the promoter of SPAC to find a worthy target at an attractive price.