Episode #236: The Trump Verdict, T+1 Trade Settlement, and Special Purpose Acquisition Companies

This week was relatively slow in market news…..until the Trump verdict came out. Donald Trump was found guilty on all 34 counts brought against him in the hush money trial, which throws more uncertainty into upcoming election cycle. The financial world changed on Tuesday as well, as the stock settlement cycle was shortened from T+2 to T+1. We cover what all this means for you, how the markets reacted to the Trump verdict, and whether the investment vehicle Trump used to take Truth Social public is something you should consider for your portfolio.

Show Notes

[02.41] Market news – Trump verdict and quiet market week.

[06.35] The settlement cycle – Grant explains how a longer settlement cycle could create a counterparty risk.

[12.02] SPAC – The benefits of going with a special purpose acquisition company.

[18.50] The history – The popularity of SPAC back in 2020 and 2021.

[25.18] Downsides – Grant explains why these special-purpose acquisition vehicles often don’t work well.

Resources

jpmorgan.com/insights/securities-services/regulatory-solutions/t-plus-1