The Dow Jones Industrial Average hit a record high of 46,924.74, gaining 218 points, with stocks like 3M, Coca-Cola, and General Motors leading. On the NYSE, 68 stocks hit new highs, and 20 hit lows, while Nasdaq saw 187 highs and 73 lows.

Numerous SPACs hit new 52-week highs recently, signaling pricey stocks. Despite past abuses, investors are returning to these vehicles, especially after the success of prominent individuals backing them.

Three SPACs on NYSE hit new highs, including American Exceptionalism Acquisition Corp., Pyrophyte Acquisition Corp. II, and Rithm Acquisition Corp. Should investors consider buying these SPACs?

American Exceptionalism Acquisition Corp. hit a new high of $11.91 on Tuesday, 19.1% above its offering price. The SPAC, affiliated with Chamath Palihapitiya’s Social Capital, focuses on future gains in specific industries.

Palihapitiya’s SPAC history includes Virgin Galactic. AEXA aims to align with companies reinforcing American exceptionalism, focusing on Energy Production, AI, Decentralized Finance, and Defense sectors.

SPACs, like AEXA, have faced criticism for favoring founders over investors. Palihapitiya’s new approach includes no warrants and his compensation vesting only if shares increase post-combination, but challenges remain.

Pyrophyte Acquisition Corp. II, sponsored by Bernard J. Duroc-Danner, raised $175 million through a traditional SPAC IPO. Despite a track record hiccup, the SPAC looks for energy business combinations.

Rithm Acquisition Corp., associated with Rithm Capital, targets financial services, real estate, and infrastructure technology. The sponsor’s return on investment is significant, raising questions about future performance.

Investors are urged to exercise caution with SPACs, considering the history of founders and the potential returns. While some SPACs show promise, it’s essential to weigh the risks and rewards before investing.

Read more at Yahoo Finance: 3 SPACs Hit New 52-Week Highs: Are Any Worth Owning?