Shell shell boom comes to an abrupt end

Frankfort, New York The current rule on the stock exchanges is: avoid risks. Investors are running for cover because they fear a hasty tightening of American monetary policy, a war in Eastern Europe and the long-term effects of Corona on the economy. This is also felt by those investment vehicles that have always involved a great deal of courage and a willingness to experiment: shell companies, the so-called SPACs (Special Purpose Acquisition Companies).

The hype was huge last year, Spacs were almost inundated with liquidity, now the big slump is coming. However, industry experts speak of a healthy market shakeout.

Spacs collect money from investors who almost blindly trust that the shell company will find an interesting takeover target at a later date. These are usually start-ups or high-growth technology companies that need fresh capital and are looking for a shortcut to the stock market.