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S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

arstechnica.com

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Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#11

Post by JumpCrisscross »

muadddib wrote: post #2

Kudos to S&P 500. Vast majority of the world has no clue how trillions of $ from their pension funds is being funneled to the select few. Absolutely pathetic.

> no clue how trillions of $ from their pension funds

Pension funds don't tend to follow the S&P 500, much less automatically. They're sophisticated institutional investors like CalPERS [1] who dabble in everything from public stocks to private equity.

It's other retirement assets, e.g. 401(k)s and IRAs, that tend to follow the S&P 500. But again, with substantial variation.

S&P including these companies would have driven a lot of money towards them. But there was a lot of misinformation around the magnitude of that drive, as well as the breadth of whom it would affect.

[1] https://en.wikipedia.org/wiki/CalPERS

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#12

Post by JumpCrisscross »

zippyman55 wrote: post #3

Yep!! Respect to them. I was planning to move to an equal weight index but this gives me a little more time to evaluate options.

> I was planning to move to an equal weight index

The only substantial effect I've seen of the influencers who were doomsplaining this decision was some minor churn in retirement assets from low-cost S&P 500 followers to higher-cost funds. (The market, broadly, never priced in a rebalancing of the S&P 500. So this was almost entirely whipped up by influencers.)

Broadly speaking, if you were actually considering trading on the back of S&P's decision, or worse, if you actually did, consider trimming who you follow for financial advice.

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#14

Post by zeroonetwothree »

zippyman55 wrote: post #3

Yep!! Respect to them. I was planning to move to an equal weight index but this gives me a little more time to evaluate options.

They weight by free float so it would been something like 0.3%. Hardly the end of the world

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#15

Post by viccis »

joxdosba wrote: post #7
muadddib wrote: post #2

Kudos to S&P 500. Vast majority of the world has no clue how trillions of $ from their pension funds is being funneled to the select few. Absolutely pathetic.

[flagged]

All of those are real, natural, organic and, might I add, "actual" words.

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#16

Post by danielovichdk »

Stocks and money. It's so boring.

I will go drive my old German car now, and get a bit drunk in a bottle of Nebbiolo while listening to some French lunatic with a piano.

Enjoy your trip to Mars and your self driving toy cars. The world is off its rails. Bit time.

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#18

Post by JumpCrisscross »

sergiotapia wrote: post #13

Major W. Regular people were going to get robbed blind.

> Major W. Regular people were going to get robbed blind

Not really. One, it was unlikely to happen. The market not pricing in any rebalancing communicated that. Two, the magnitude–even for the S&P 500–would have been small. About a third of stocks are in passive strategies, about 15% in any index, and while most of that is the S&P 500, the index market is incredibly competitive.

S&P made the right move. But the tragedy this episode has revealed, at least to me, is in how venal and influential this new breed of financial influencers on YouTube and X are, and the degree to which they're willing to misinform to get clicks.

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#19

Post by [deleted] »

lumost wrote: post #8
joxdosba wrote: post #7

Earlier quoted context omitted.

[flagged]

It's quite clear that there is an effort to engineer mega financial vehicles that index tracking funds are forced to buy. The incentive to do so is massive, and there is nothing illegal about it. As a holder of index funds such as the S&P, I'd much prefer that these vehicles are excluded for at least some period of time to ensure that the greater fool isn't simply my index portfolio.

[deleted]

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#20

Post by vostrocity »

JumpCrisscross wrote: post #12
zippyman55 wrote: post #3

Yep!! Respect to them. I was planning to move to an equal weight index but this gives me a little more time to evaluate options.

> I was planning to move to an equal weight index The only substantial effect I've seen of the influencers who were doomsplaining this decision was some minor churn in retirement assets from low-cost S&P 500 followers to higher-cost funds. (The market, broadly, never priced in a rebalancing of the S&P 500. So this was almost entirely whipped up by influencers.) Broadly speaking, if you were actually considering tradi…

The market may not have ever priced in a rebalancing of the S&P 500, but the S&P 500 also has never allowed entry of companies that may never become profitable.
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