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But I'm still confused - the TSLA craziness is specifically excluded from index funds. If you had money in TSLA chances are you put it there yourself outside of
by SketchySeaBeast 6y ago
But I'm still confused - the TSLA craziness is specifically excluded from index funds. If you had money in TSLA chances are you put it there yourself outside of an index fund and certainly not one that was S&P 500 focused (which is apparently the default choice).
- mumblemumble 6y agoThe big pop and big drop around the S&P 500 decision is not just TSLA craziness. It's also S&P 500 craziness - people were, I'm guessing, speculating on the expected effect that an S&P 500 listing would have on demand for TSLA shares. Or, to put it another way, I think we just saw another indication that the S&P 500 index is not immune to Goodhart's Law.
- robjan 6y agoThink it's more that there are lots of less sophisticated investors in on TSLA. Inclusion in the SP500 does not usually send a stock to the moon because it's already priced in.
- hartator 6y agoI think his point was TSLA should be included in the SP500 whatever index management think of this stock just based on numbers and not including it is kind of going against the market.