121–130 of 161 posts
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The problem isn’t that you’re invested in the index. The problem is that the index decided it wanted to change its rules to include companies that are not profitable. I still remember the days when you needed to be profitable for x quarters and have a minimum amount of float to be listed in an index. That changed overnight and we all know why.
S&P 500 did not change its rules right?
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The vast majority of American employees are not maxing out every tax advantaged retirement account instrument, and putting everything in a 401(k) past the employer match level is not advisable exactly because of the limited investment choices.
except if you self-employed. I have maxed the shit out of my 401k (i401k, self-managed) and after 3 decade career have more saved than I can spend in 8 lifetimes
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…
Is spaceX absolutely vital for the US national security through Starlink as well as the launch of military satellites? Yes, and as a matter of fact this is also true for NATO allies, Japan, Taiwan, SK, etc in any future conflict for at least the next 5 to 10 years, just as it has been for the past 4 years in Ukraine. In addition to land based infrastructure that can be targeted in any future war -undersea cables are…
Their current valuation makes absolutely no sense given the size of their business and the next century of business unless they’re going to pull the rug on the US and its allies and increase costs 100x.
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.…
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Musk tried mightily to get S&P to change their 12 month rule to 15 days but they refused. Nasdaq, however, caved to Musk and agreed to change the rules of its Index - from a 12 months wait to 15 days - in exchange for Musk agreeing to list SpaceX on Nasdaq's exchange. There are ETFs that were issued tied to the Nasdaq 100 which are therefore legally bound to buy SpaceX. But the biggest immorality is the SEC allowing…
I don't understand your comment. The SEC doesn't control IPO prices. No one was forced to buy $SPCX at the IPO price.
That was Musk's plan. It failed because he couldn't get the major indexes to cow tail to his pressure and demands.
Edit: My reference to the SEC is that they are charged with investigating market manipulation. And Musk was involved in the biggest attempt at market manipulation probably in history - trying to pressure private indexes used by almost every ETF in the world (S&P and CRSP) to change their rules which would have legally obligated those ETFs to purchase SpaceX within 15 days.
However, the SEC cannot investigate it because no laws would be violated despite the fact it would have been an incredible market manipulation.
In fact, the change in rules by Nasdaq 100 is a huge market manipulation that has taken place exactly as I describe - it's simply not as catastrophically large as it would have been had all the major indexes succumbed to Musk's demands.
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…
Is spaceX absolutely vital for the US national security through Starlink as well as the launch of military satellites? Yes, and as a matter of fact this is also true for NATO allies, Japan, Taiwan, SK, etc in any future conflict for at least the next 5 to 10 years, just as it has been for the past 4 years in Ukraine. In addition to land based infrastructure that can be targeted in any future war -undersea cables are…
Earlier quoted context omitted.
The vast majority of American employees are not maxing out every tax advantaged retirement account instrument, and putting everything in a 401(k) past the employer match level is not advisable exactly because of the limited investment choices.
except if you self-employed. I have maxed the shit out of my 401k (i401k, self-managed) and after 3 decade career have more saved than I can spend in 8 lifetimes
This largely being my gripe about the Trump accounts in that you're allocating funds into them that can't be touched without penalties until like 50 years later. And for most people this probably isn't even a benefit because you can lifetime gift ~$15 million so like unless you're Bezos just invest the money yourself and gift your kid whatever large value item they wanted.
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Sure but it’s not the only one. Add in SPY, QQQ, and IWM Force Index Funds and the percentage of Americans buying SpaceX early due to rule changes looks bad. Edit: Ops SPY didn’t change their rules.
SPYis sp500 is it not? Why would they include it? For others like qqq it has no bearing to be frank. It follows the nasdaq 100. Maybe an argument that the extra few months would have allowed more price discovery but I am not so sure.
Of course Musk isn't doing it himself. He already bought Twitter so he could control what is said about him. And, as the wealthiest man in the world, he'd be stupid if he hasn't hired tens of thousands of people to monitor posts about him or his concerns and to downvote them (or whatever he wants). The cost to him for doing that would be similar to us spending ten cents.
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I don't understand your comment. The SEC doesn't control IPO prices. No one was forced to buy $SPCX at the IPO price.
If Musk's pressure had succeeded and the S&P and CRSP had changed their index rules, then the major indexes would have been legally obligated to buy SpaceX at the IPO price - or presumably higher because their own mass purchases would have driven the price even higher. That was Musk's plan. It failed because he couldn't get the major indexes to cow tail to his pressure and demands. Edit: My reference to the SEC is th…