Earlier quoted context omitted.
Move your investments to funds that won’t automatically buy spacex stocks
Moving investments usually means taxable events, which we like to avoid if possible.
Not in retirement accounts
Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
621–630 of 1001 posts
Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#622Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#623Earlier quoted context omitted.
This should be a 5 alarm fire. It reminds me of nothing more than organized crime rackets that targeted control of union retirement funds
Should one sell their 401ks ahead of the forced buying
"Be fearful when others are greedy". Greed is at an all-time high, so be careful. Whether that means buying or selling or staying put is for you to decide.
Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#624For SpaceX (and possible the others): Yes it can, since they changed the rules to force over $30 trillion in passive 401k and retirement money to buy SpaceX at IPO valuations. From https://x.com/Hedgeye/status/2060435253928604065 : "Rule changes for the SpaceX $SPCX IPO: Index providers waived the profitability requirement and cut the seasoning window from 90 days to 5. This forces over $30 trillion in passive 401k a…
Well, the good times were nice while they lasted. I fully expect a meltdown.
Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#625Earlier quoted context omitted.
I've been told the following (obviously negative) narrative. Can someone verify/refute some of these? I've put (?) next to questionable claims. 1. Twitter is purchased with debt 2. Debt is transferred to xAI via acquisition of X/Twitter 3. Debt is further transferred to SpaceX via acquisition of xAI 4. SpaceX IPO offered at extreme valuation 5. Index fund inclusion rules waived for SpaceX IPO: profitability requireme…
> 7. Index fund managers are not incentivized to exclude a SpaceX from their indexes. (?) Correction: index funds don't have a choice. They must follow the index, and so must buy the stock. side effect: they'll have to sell other stocks, pushing their prices and weighting in market cap weighted indexes down. > Passive investors are unable to rapidly respond to these types of changes because liquidating portfolios wil…
Mmmm legalized theft: the new Tech Industry!
Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#626For SpaceX (and possible the others): Yes it can, since they changed the rules to force over $30 trillion in passive 401k and retirement money to buy SpaceX at IPO valuations. From https://x.com/Hedgeye/status/2060435253928604065 : "Rule changes for the SpaceX $SPCX IPO: Index providers waived the profitability requirement and cut the seasoning window from 90 days to 5. This forces over $30 trillion in passive 401k a…
This is why I have moved all my money out of the US market. I’d rather go for the picks and shovels in Asia and the boring rule of law in Europe.
Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#627All these things are apparently valued at trillions of dollars these days. Where's the trillions, or hundreds of billions worth in improved quality of life? What has gotten better other than the ability to produce more crap?
In terms of SpaceX (the space portion of it) they've produced the cheapest way to get any payload into space. If you pay anybody else, you will overpay drastically depending on who you want to take your payload into space. In terms of AI, we've seen even here on HN everything from mathematical problems that remaind unsolved, being solved, mathematical proofs being used to disprove theories, heck we even learned more…
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Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#628Earlier quoted context omitted.
One thing I have come to realize, is that worrying about bubbles will keep you poor. If everyone is in the bubble and it pops, everyone is in the same boat, so you’re not really going to be poorer than your peers by comparison. If it’s not a bubble and you are wrong, you will fall way behind everyone else and just watch people get richer and richer doing the exact same thing you should have done. Also, just because s…
Ask Warren Buffet how concerned he was of "missing" on bubbles... He got richer than pretty much everybody else by just avoiding bubbles and then buying assets at fire sale prices when they inevitably popped.
https://x.com/Mr_Derivatives/status/2022796755621060695
Chamath says Warren Buffett outperformed the $SPX by 2 times pre-2000’s because he used "insider info".
Berkshire Hathaway completely exited its investment in Paytm (One97 Communications) in November 2023. This divestment occurred just two months prior to the Reserve Bank of India (RBI) initiating its strict regulatory and KYC-related crackdowns on Paytm Payments Bank in early 2024.
I think Warren has been doing insider trading.
Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#629Earlier quoted context omitted.
Okay before we set off the alarm though, can someone tell me What percentage of these index funds will be SPCX and TSLA? Like if both these stocks become penny stocks what happens to the indices? Isn’t the whole point that they are hedged across the whole market?
As of January, TSLA was somewhere around 2.3% of the S&P [1]. Because SpaceX will have so little float available, it would be somewhere around 0.7% if included. [1] https://en.wikipedia.org/wiki/S%26P_500
Ya, but this is a proof-of-concept rip-off. The fact that the indexes don't have our back is a huge problem.
Re: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
#630Earlier quoted context omitted.
The twitter debt is a negligible portion of the money at stake here. It’s a footnote compared to the trillions of dollars in wealth that are moving around. We are only talking about it because the internet commentariat has special interest in twitter. Not worth wasting time thinking about it if you are deciding how to allocate your portfolio. Nevertheless it is part of a pattern of weird deals in Elon’s companies. He…
Sure, I don't like him either but it shouldn't be about him. It should be about the institutions we trusted to keep our index funds safe. Or was this always based on "vibes"? Was VOO never safe? Was it always possible for the people in charge of the stock market to simply include some money pit into our retirement funds? I feel like the people responsible for these decisions must fear life in prison or this will keep…
It was never safe, he's exposed the system's design was never intended to be safe for anyone but those in charge.