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Americans express unease over SpaceX's influence on retirement savings

theguardian.com

11–20 of 161 posts

Re: Americans express unease over SpaceX's influence on retirement savings

#11
You can opt to put some or all of your 401K into a "Value fund"

VVIAX (Vanguard) or FLCOX (Fidelity)

to reduce your exposure to the highest of high-flying stocks.

Of course, many small company 401Ks limit your investment options to a small family of high expense ratio funds...

Re: Americans express unease over SpaceX's influence on retirement savings

#12

Everybody is upset about the rule change, but to be honest, they would’ve just ended up in the same position a few months later. Elon has kept Tesla’s market cap at 5-10x what any reasonable investor would think it should be for the better part of a decade. It’s not like SpaceX is going to tank in the next 3 months and they’ll be left holding the bag. It’s not like it wasn’t going to end up in every index in a year.…

Moving to have 401ks investing in it when 5% of the stock is publicly available versus 30-40%+ that would have been available on the previous timelines seems like it could have pretty dramatic effects on its price.

Re: Americans express unease over SpaceX's influence on retirement savings

#13
The recent AI craze is really just LLMs. I feel like finance was likely already the most AI-adopted industry without LLMs and their impact the last few years may have taken them from “80 to 100” where most industries are going “10 to 50.” Go back to 2022 for a moment and I think this article is identical.

Re: Americans express unease over SpaceX's influence on retirement savings

#14
An interesting variant of "privatise the profits, socialise the losses" played wholly in the private sector capital investment space. "When you're rich they let you" is big in this because a functional board of a company about to be vested with a massive debt overhang from a serial offender (X and xAI) would surely have said "could we NOT" about this and the whole model including A and B class voting shares suggests this is a control issue: given proper control models none of this could happen.

Re: Americans express unease over SpaceX's influence on retirement savings

#16

SpaceX has not been added to the S&P 500. They asked for the rules to be waived. S&P said no. I don't understand this article.

S&P 500 didn’t change their rules but other indexes have.

https://indexes.nasdaqomx.com/docs/2026_May_NDX_Changes_FAQ....

Q: What is the purpose of modifying the liquidity and seasoning requirements? Could this change result in the inclusion of illiquid securities in the index?

A: Most indexes require a liquidity threshold for new constituents, often as a minimum share count or average daily trading value. For the Nasdaq-100®, securities must have a three-month average daily traded value of at least $5 million. Since only very large companies – typically with full market capitalizations over $100 billion as of March 2026 – would have qualified for fast entry, they are expected to easily and quickly meet this requirement. However, an average daily traded value of at least $5 million from the time of listing will still be required for fast entry candidates. Many indexes have included seasoning requirements to ensure that traditional IPOs undergo price discovery and stabilization before being included. These requirements were originally intended to prevent small or little-known companies from entering too soon. However, there is now a trend toward IPOs being larger and more mature than in the past. Companies expected to meet the fast entry threshold are likely to be among the world’s most significant and well-known firms. High investor interest and trading volumes should accelerate price discovery, further supporting a shorter seasoning period. Note that the seasoning period for companies outside of the Top 40 remains at three months.

Several indexes have changed not just Nasdaq, but it’s one more people have heard about.

Re: Americans express unease over SpaceX's influence on retirement savings

#18
Half of the companies in the S&P 500 are trading at over 10x sales.

SpaceX is just another one on top of the pile, whenever it gets included.

Valuation multiples always mean revert on a long enough timeline... you can position for it today if you care to.

https://www.multpl.com/s-p-500-price-to-sales

Re: Americans express unease over SpaceX's influence on retirement savings

#19

Everybody is upset about the rule change, but to be honest, they would’ve just ended up in the same position a few months later. Elon has kept Tesla’s market cap at 5-10x what any reasonable investor would think it should be for the better part of a decade. It’s not like SpaceX is going to tank in the next 3 months and they’ll be left holding the bag. It’s not like it wasn’t going to end up in every index in a year.…

Moving to have 401ks investing in it when 5% of the stock is publicly available versus 30-40%+ that would have been available on the previous timelines seems like it could have pretty dramatic effects on its price.

The relevant indices (S&P500, Vanguard) buy in proportion to available float -- i.e., its market cap is weighted by 5%. Only Nasdaq 100 ignores float, stupidly, but almost no money, especially 401(k) money, is in that.

Re: Americans express unease over SpaceX's influence on retirement savings

#20
post #7

Everybody is upset about the rule change, but to be honest, they would’ve just ended up in the same position a few months later. Elon has kept Tesla’s market cap at 5-10x what any reasonable investor would think it should be for the better part of a decade. It’s not like SpaceX is going to tank in the next 3 months and they’ll be left holding the bag. It’s not like it wasn’t going to end up in every index in a year.…

Without rapid purchasing by indexes SpaceX’s stock would likely to tank as ever more people would be able to sell over the first year. It’s a 24 year old company with a current high flying stock price based on very questionable numbers.

We all said that about Tesla for years, and a lot of people got burned on the trade. This time may be different, but it also may not be.
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