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The SPACopalypse is upon us, maybe

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Today's Agenda

SPACopalypse Now

Whenever this pandemic is over, we'll probably keep some quarantine habits but toss others. We'll work from home more often, but we'll finally get our hair cut, too. We'll shake hands again, but then we'll wash them in a panic as soon as possible.

One 2020 practice we'll hopefully drop is blowing our retirement funds on special purpose acquisition companies, or SPACs. This newsletter warned you about these things last October, and maybe you're finally listening. For too long, investors were running up SPAC prices without even knowing what these blank-check companies planned to buy, and SPACers ramped up supply to meet the demand. No longer: SPACs have tumbled into a bear market lately, writes Chris Bryant. Even SPAC king Chamath Palihapitiya is starting to cash in. The recent surge in interest rates makes such risky investments less appealing. But mainly people are finally realizing what we noted in October: These things might make insiders richer, but they usually disappoint normal human investors. 

Meanwhile, everybody is suddenly buying value stocks, John Authers writes, reviving a fad not seen since the pre-crisis 2000s. 

Another thing we'll hopefully do in the Vaccinated Age is not let our kids stare at screens all day. For the past year, parents everywhere have kept their locked-down darlings glued to iPads and XBoxes and the like, making this a boom time for Roblox, an online gaming platform that the SpongeBob (and older) set finds irresistible. Great luck for Roblox, then, that it happens to be going public just at this moment, notes Michelle Leder. The question is what happens when kids rediscover "real life" and "outside." 

We might change not only our work habits post-Covid, but also entire jobs: Sarah Green Carmichael writes the pandemic anniversary has a lot of people thinking about jumping ship, especially if the coronavirus has exposed the worst aspects of their current gigs. If your boss made fun of you for wearing a mask in the office, for example, then it's time to find a new boss.

One thing we probably won't be doing in the After Times, writes Sarah Halzack, is wearing skinny jeans. FINALLY, it's time to break out the JNCOs.

We're Still Sending the Wrong Vaccine Messages

Of course, the After Times will be delayed indefinitely if we don't hurry up and get more people vaccinated. To that end, everybody should really stop denigrating the Johnson & Johnson shot as the runt of the vaccine litter compared to Moderna and Pfizer, writes Faye Flam. The efficacy numbers we throw around aren't apples-to-apples comparisons. And all three vaccines are almost 100% effective at keeping people out of the hospital or dying. People with no other option but the J&J shot might be reluctant to take it if they feel they're being cheated, Faye writes. Officials must make clear that's not so, and nobody should assume the Moderna or Pfizer vaccines 100% prevent any Covid infection at all, as our own Mary Duenwald discovered firsthand. 

This Is Not 2019's Saudi Oil Attack

Speaking of unwelcome revivals: Just as they did in September 2019, Iran-backed Houthis claimed responsibility for attacking a Saudi oil facility this weekend. Unlike the 2019 attack, however, this one should have no effect on oil prices, notes David Fickling. The damage was minimal, for one thing. But the state of the oil industry is completely different, too, writes Liam Denning. For one thing, Saudi Arabia and its OPEC+ members have full control of the market now, keeping production low even as demand starts to rise. They're betting beaten-down American frackers won't get back to pumping under the circumstances, notes Julian Lee. But the more prices keep rising, with or without Houthi attacks, the riskier such a bet becomes.  

Telltale Charts 

Markets want the Fed to put a cap on long-term Treasury yields, but there's already one in place, writes Brian Chappatta: It shows up in the Fed's own "dot plot."

Companies everywhere are "debranding" their icons to be quieter and simpler, writes Ben Schott.

Further Reading

President Joe Biden must try to limit the damage of the Nord Stream 2 pipeline without hurting relations with Germany. — Bloomberg's editorial board 

How Kathryn Garcia would run New York City. — Howard Wolfson 

Corporate diversity drives are incomplete if they ignore the disabled. — Tom Harkin and Robert Ludke 

The Microsoft hack is the latest escalation toward a devastating global cyberwar. — Tim Culpan 

Meghan and Harry are basically attempting a corporate spinoff. — Alex Webb 

Out of the spotlight, Minneapolis's mayor is still trying to reform police without defunding them. — Adam Minter 

ICYMI

The CDC said it was OK for fully vaccinated people to visit low-risk people indoors without masks.

MacKenzie Scott, ex of Jeff Bezos, married a science teacher.

Tesla is plugging a secret mega-battery into the Texas power grid.

Kominers's Conundrums Hint

If you're stuck on our crypto art Conundrum, you might find it helpful to separate out the different types of information in the addresses. Letters, numbers? You can assuredly make sense of something in there.

And if you've found the art but have trouble figuring out the artist's signature, then you should look for information in the addresses you didn't use in locating the art — that's what you'll want to decrypt. — Scott Duke Kominers

Kickers

Singapore built a bubble facility for quarantine-free business travelers. (h/t Scott Kominers)

Some sea slugs cut off their own heads and grow new bodies.

Scientists identify 140,000 virus species in the human gut.

Disposable paper dresses were a thing in the '60s.

Notes:  Please send hagfish slime and complaints to Mark Gongloff at mgongloff1@bloomberg.net.

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