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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

#131

Post by Hamuko »

frozenseven wrote: post #96
LinguaBrowse wrote: post #42

Earlier quoted context omitted.

I’ve moved my S&P 500 investments to the Equal Weight index to reduce my exposure to AI. Quite aside from SpaceX, I think the large-cap tech companies are making some uncomfortably large bets on AI and any major upset could cause a domino effect. But as so many ETFs have a significant stake in large-cap US tech stocks (the top 10 holdings of the iShares MSCI World ETF is entirely comprised US Big Tech, making up 20%…

[flagged]

Call me when the greatest tech revolution stops burning through billions and billions of dollars.

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

#132

Post by ncruces »

flexagoon wrote: post #121
ncruces wrote: post #109

Anyone knows what MSCI World will do?

Same question. It seems like they have had fast track rules for a pretty long time and will include SpaceX https://www.msci.com/indexes/markets-in-motion/megacap-ipos

So the funds will have to buy within 10 days of the IPO.

But I assume at least it's based on the free-float market cap?

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

#133

Post by speed_spread »

frozenseven wrote: post #106
Saline9515 wrote: post #103

Earlier quoted context omitted.

Have you heard of the dot com bubble?

Yes, I've heard of it. And I say that there's no bubble and the AI market is greatly undervalued.

The Internet brought obvious benefits to everyone. New ways to communicate, associate and do business. It was a tool of collective empowerment. It promised a more equal, dynamic society. The promises of AI are much less constructive. I can see the power being immediately funneled to the top of the pyramid while everyone else sucks it up. It's not a future I want invest in or take part of.

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

#134

Post by marcosscriven »

frozenseven wrote: post #96
LinguaBrowse wrote: post #42

Earlier quoted context omitted.

I’ve moved my S&P 500 investments to the Equal Weight index to reduce my exposure to AI. Quite aside from SpaceX, I think the large-cap tech companies are making some uncomfortably large bets on AI and any major upset could cause a domino effect. But as so many ETFs have a significant stake in large-cap US tech stocks (the top 10 holdings of the iShares MSCI World ETF is entirely comprised US Big Tech, making up 20%…

[flagged]

If you’re here next year for the “honest retrospective”, it’s a deal.

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

#135

Post by matwood »

zhivota wrote: post #30

Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.

> the same passive strategy they always have

You'll be shocked to know they have changed the inclusion rules a number of times.

I suspect if in 12 months these megacaps are still megacaps, they will revisit the profitability rules. It's hard to have an index with 500 of the largest, most significant companies leaving out companies with trillion dollar market caps.

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

#136

Post by bmelton »

frozenseven wrote: post #106
Saline9515 wrote: post #103

Earlier quoted context omitted.

Have you heard of the dot com bubble?

Yes, I've heard of it. And I say that there's no bubble and the AI market is greatly undervalued.

I agree with you that the AI market is greatly undervalued, but I also agree with the field that these companies are overvalued

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

#138

Post by MikeNotThePope »

matwood wrote: post #135
zhivota wrote: post #30

Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.

> the same passive strategy they always have You'll be shocked to know they have changed the inclusion rules a number of times. I suspect if in 12 months these megacaps are still megacaps, they will revisit the profitability rules. It's hard to have an index with 500 of the largest, most significant companies leaving out companies with trillion dollar market caps.

It’s a list of the 500 largest profitable companies. Gotta make some bottom line $$$ to be included. At least that’s how it’s worked in the past.

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

#139

Post by matwood »

vostrocity wrote: post #20
JumpCrisscross wrote: post #12

Earlier quoted context omitted.

> 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.

> but the S&P 500 also has never allowed entry of companies that may never become profitable

I suspect this will be revisited if all these companies are still 1T+ market cap 12 months from now. At some point the S&P will have to say the market itself has spoken and likely capitulate.

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

#140

Post by psychoslave »

A bit tangent, as I never had a single thought about investing any of the few precious attention moment into financial theaters.

if I get it this is an index to invest in common in distributed wallets chosen and managed by an organization named S&P?

I'ld be interested in something similar, but aiming at growing cooperatives, non profits, externally checked for alignment organisations striving to benefit humanity as a whole. It doesn't have to be something that have strong garanties of direct personal financial profits, just no way it makes me in personal bankrupts, zero personal gain would be ok, staying ahead of inflation nice to have, and having some profits back would be acceptable.

Please be kind or hold from losing time and energy for everybody with aggressive answers.

I'm just considering ways to make sure as few as possible resources end up in the control of techno fascists.

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