Excellent! Fuck Musk.
And while I’m not an AI hater, that is 100% the investors trying to cash out before the industry runs into trouble.
Yeah, it really is painfully obvious that the fatcats are trying to cash out on the bubble before it blows.
Orrrr its literally baked into the definition of what it means to be on the S&P.
Asset allocation funds might still include it. Your Vanguards and BlackRocks.
The very broad funds definitely will - VTI/VTSAX - but at lower weights and under less time pressure than the rigid index funds (VOO/VFIAX). That takes off a lot of the liquidity squeeze and (presumably) reduces their loss.
But you have to remember that people who use these funds intentionally invest in obvious losers and willingly overpay for hyped stocks because they believe, in the long run, that buying obvious losers is more than balanced by also buying the unexpected winners.
SpaceX is just the first time an oligarch tried so obviously to rig the passive investor structure to his favor, and I’m glad the S&P people didn’t cave.
The popular Vanguard ETFs will definitely have it, they do track CRSP and FTSE Russell (VT and VTI for example) - Both of which adopted fast track rules that will allow SpaceX to become eligible 5 days after the IPO. Unless Vanguard themselves decide not to include it in their portfolios (seems unlikely but you never know). I think Vanguard does have some funds specific to tracking S&P but that’s not usually what people use Vanguard for.
e.g.
https://moneywise.com/news/top-stories/elon-musk-spacex-ipo-crsp-vti-ftse-russell-nasdaq-401k
That could lead to some interesting outcomes, how these funds look in 12 months could indeed be tied to which specific index(s) they are tracking.
You mean Vanguard and Blackrock ETF?
Might? Also, when other Ai companies are already counted in the S&P or would be redundant.
I’ve already withdrawn money I had invested in US.
You can’t convince me this isn’t bubble:
The main issue as usual is US hegemony (or what’s left of it) has a way of fucking up the rest of the world. When that bubble pops it’s going to cause a whole bunch of industries trouble.
Hence why there is frantic effort in decoupling from USA and connecting with alternative markets in the rest of the world.
Yeah fucking finally too!
Every fucking american crisis bleeds into our countries every goddamn time, but they? Let’s do worse next time!! No regulation!! War!!
Aaaahrg.
/Rant off
Here’s an even more interesting one:
It’s the P/E ratio (the ration between the stock Price of a company and it’s Earnings) of the Nasdaq vs the Price.
Notice how the Nasdaq price has tracked the P/E, with since at least 2002 the stock prices not increasing because company earnings are going up but rather just from increased speculation hence the rise in the the ratio of stock Prices to Earnings.
The P/E now (i.e. company valuations relative to the actual money a company makes) is now about twice as much as back in 2020.
Tf happened in Spring 26?
We launched attacks on Iran to distract from the Epstein files, leading to the closure of the strait of Hormuz and dwindling oil reserves around the world. It was only like 3 months ago, I’m surprised you didn’t hear about this
Good.
Fuck Musk.
But let’s be real they’ll just wait the standard length for entry. No big deal for them. If he needs more funds I’m sure he can ask the US government again.
I have no idea what S&P 500 is, I assume it’s a stock market index for Fortune 500 companies? Anyway, for the sake of humour and laziness I’m just gonna pretend it stands for Salt & Pepper 500 and is a knock-off of Indy 500.
https://en.wikipedia.org/wiki/S%26P_500
Regardless of what you think about it, it’s good to know what it means because it’s like the financial thermometer of the US and what moves the world in a lot of ways
Standard & Poor
Why would this get downvoted so much?
