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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

#301

Post by mannanj »

groundzeros2015 wrote: post #290
CuriouslyC wrote: post #184

Earlier quoted context omitted.

I've been doing research on this subject for an article I'm writing, and the only way things end well if the government gets involved is if we pass legislation deprivatizing AI data centers. Like the dark fiber laid during the dotcom, the compute is the valuable thing here that will remain after the speculative bubble has burst. The deal isn't bad for the AI companies, they can depreciate on a short schedule while st…

Why is government seizing data centers a good thing?

How about because they used tax payer money to help fund them? Why should my money make AI executives & shareholders richer? And let them own the products of my tax?

edit: We used to call that Fraud.

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

#302

Post by outside1234 »

cj wrote: post #224
derf_ wrote: post #187

Earlier quoted context omitted.

> I found S&P 500 Equal Weight to be pretty attractive. The rebalancing required to maintain equal weights means constantly selling your winners and buying more of your losers. That creates volatility drag. Stock returns are highly skewed: only about 4% of stocks outperform the market, and are responsible for most of its gains. By keeping your allocation to those stocks small through constant rebalancing, you are mis…

If big tech ends up seeing a 40-50% draw down in the next 2-3 years, what ETF is best equipped to limit the blast radius?

Probably an international fund like VEA that is much more diversified.

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

#303

Post by qotgalaxy »

matwood wrote: post #141
figmert wrote: post #27

Earlier quoted context omitted.

Why is that relevant? The rules are in place for a reason, why does it matter what the percentage is? They're not profitable. When they prove they're worth the dollars, they can be included, per the rules. Also, S&P500 has a current market cap of $67 trillion, 0.3% of that is some $200billion. That is essentially a wealth transfer to the rich. They don't need it.

> The rules are in place for a reason, why does it matter what the percentage is? They're not profitable. When they prove they're worth the dollars, they can be included, per the rules. I'm sure you know this, but the rules have been changed many times over the years. Now that companies IPO much later with huge market caps, I suspect we'll see more rule changes over time. The S&P 500 is fairly conservative, so they h…

[dead]

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

#304

Post by bell-cot »

alaudet wrote: post #254
bell-cot wrote: post #191

Earlier quoted context omitted.

> ... Standard and Poor one day being worth trillions ... S&P - https://en.wikipedia.org/wiki/S%26P_Global - is a business intel & analytics firm, not an investment firm. Their S&P 500 list just one of many datasets that they manage and sell. Cleverly trying to pick future winners and losers has little potential upside for them, and could put them into direct competition with many of their customers.

It's amazing how many intelligent people don't understand this. People on the internet just like to complain. Not one single person is being denied anything, each and everyone one of us can go fill up on all the high valuation unproven companies we want to, directly or through an ETF that tracks some index that is making exceptions.

Yeah - though I might phrase it "don't want to understand this". Which is, in many ways, a mindset which they are carefully taught. Late-stage capitalism's 0.01% need the 10%, or at least the 1%, to really believe that they should dutifully support the status quo, and "invest" as they are told to - no mental effort required - so that they can magically get richer & richer.

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

#305

Post by outside1234 »

zeroonetwothree wrote: post #14
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

0.3% for SpaceX, 0.3% for Sam Altman’s OpenAI garbage, 0.3% for Anthropic, 0.3% for whatever Elon’s next scam is, and … pretty soon you are talking about big numbers.

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

#306

Post by vmg12 »

cool_dude85 wrote: post #289
vmg12 wrote: post #239

Earlier quoted context omitted.

Company performance doesnt follow a uniform distribution where each company is as likely to overperform as any other. Selling companies that are run well because their stock went up is a great way to miss out on a lot of money.

If you're reliably beating the market over a long time horizon by picking specific stocks, you're a billionaire, or soon to be.

This is a non sequitur. We are talking about the standard weight s&p 500 vs an equal weight s&p500

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

#307

Post by groundzeros2015 »

trumpdong wrote: post #156
blobbers wrote: post #69

Good. Financial grift needs to end. Passive investment has become slightly too passive. S&P saved us. We weren't so lucky when they were rating bonds before the GFC. Glad they seem to have grown some ethics and are not bending the knee to the rocketman.

As a rule, no one in the financial industry has ethics. They're doing this because they think it'll be more profitable.

Of course. And maintaining public trust in the quality of their top brand ETF is a good way to make money.

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

#308

Post by flextheruler »

uyzstvqs wrote: post #281
danielovichdk wrote: post #16

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.

I will go ride my horse, and get a bit drunk off some ale at the local pub. You go enjoy your automobile, electricity, and telephony. Electricity is overhyped anyway. Nikola Tesla is a scammer with his crazy ideas. Not to mention the scam that is Bell's telephony. Electricity is causing a copper shortage for us common folk. This electricity bubble is built only on hype, and will pop soon enough!

You've named technologies that people were heavily speculating on that did experience bubbles. A useful technology and a painful misallocation of resources is far from mutually exclusive.

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

#309

Post by etempleton »

n_e wrote: post #255
etempleton wrote: post #215

Earlier quoted context omitted.

One of my indices of mania. You saw similar comments for crypto, blockchain, NFT, VR.

Unfortunately it's not limited to the trendy topics. For example there is a huge amount of factually wrong comments on the topic of npm vulnerabilities. I'm sure it's the same on topics I know less about.

I think there are also people who understand the technology but overestimate potential impact. I remember someone at the Apple Vision Pro announcement arguing that this would be one of Apple’s biggest products and everyone would want them for taking photos and videos of their kids birthdays and such because it would be so much more natural than pulling out a camera and they just couldn’t be talked out of it.

Sometimes a technology can be really cool and never catch on. Sometimes a technology can be really popular anbd even world changing and never make much if any money.

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

#310

Post by groundzeros2015 »

psychoslave wrote: post #140

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…

sounds like a non-profit service project, not an investment.
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