Most economists will agree that following every boom cycle is a bust. These cycles, however, don’t just occur at the macroeconomic level, we regularly see micro-cycles occur within industries and sub-industries and sometimes the contagion effect of these cycles flows over to the broader macroeconomy, think tech-boom that ended abruptly in 2001 or the sub-prime mortgage crisis that sparked the GFC.
As the interest rate cycle changes with reserve banks around the world increasing the cost of capital in an attempt to control inflation, we are also starting to see some of the microcycles coming to an end. In this month’s newsletter, we revisit what’s happening in the world of SPACs after they became the hottest thing on Wall Street in 2020 and we explore what’s behind the dark clouds looming over the Buy Now, Pay Later industry.
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