4 ms·

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

by pj_mukh 5mo ago

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?

andruby 5mo ago
Assuming $75B float for SpaceX * S&P500: 0.08% – 0.12% * NASDAQ-100: 0.47% – 0.70% * Russell 1000: 0.1%
- mgiannopoulos 5mo ago
  A key point to look out for is how much money Anthropic and later OpenAI will go for in their IPO, which will utilise the same (updated) rules.
derf_ 5mo ago
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 https://en.wikipedia.org/wiki/S%26P_500
- bwb 5mo ago
  Ya, but this is a proof-of-concept rip-off. The fact that the indexes don't have our back is a huge problem.
  - rapind 5mo ago
    It's only a problem for the ones left holding the bag. I'm at an all-time low allocation percentage in the US stock market and considering pulling more out still. Full on casino vibes at this point.
    - mancerayder 5mo ago
      It's doubled in five years while inflation's gone up by 30+ percent. Where exactly is there to hide? Not gold - that peaked and went down a lot. Let's not talk about BTC, either. Real estate? You've got taxes on that in the US, it's how our governments can pretend to not tax us as much as in Europe while still taxing us as much as in Europe (property tax goes to schools) What's left?
      - rapind 5mo ago
        I mean, gold is up significantly more than then broad market since Trump took over, but that doesn’t mean you should gamble on it continuing. I don’t trust real estate either. Seems like anything with a middleman is setting record levels of grift right now. I don’t trust the industries reports. No one is regulating or checking numbers. I shifted into more bonds. Probably a bit early, but I’m not a pro. I’ve just lost trust in the market which no longer seems tied to reality or at least my limited understanding of reality. Staying in it just feels yolo atm.
  - chasd00 5mo ago
    > The fact that the indexes don't have our back is a huge problem how could an index fund possibly have anyone's back? It's in index of the top 500 publicly traded companies. that's all. If SpaceX or Tesla or Anthropic or anyone else fall out of the top 500 then they fall off the index by definition. I think a lot of these comments are coming from extreme emotions associated with AI and Elon Musk and not so much the way things work and will play out.
    - gleenn 5mo ago
      Because they are breaking all their own rules by removing the seasoning and profitability requirements to fast-track this stock in.
    - SilasX 5mo ago
      No, that's not all. They had additional criteria that they changed right when big-name companies wanted to get added. Now, if they had historically gone by pure market cap, and these companies met that, then you'd have a point.

by pj_mukh 5mo ago

andruby 5mo ago

Assuming $75B float for SpaceX * S&P500: 0.08% – 0.12% * NASDAQ-100: 0.47% – 0.70% * Russell 1000: 0.1%

mgiannopoulos 5mo ago
A key point to look out for is how much money Anthropic and later OpenAI will go for in their IPO, which will utilise the same (updated) rules.

derf_ 5mo ago

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 https://en.wikipedia.org/wiki/S%26P_500

bwb 5mo ago
Ya, but this is a proof-of-concept rip-off. The fact that the indexes don't have our back is a huge problem.
- rapind 5mo ago
  It's only a problem for the ones left holding the bag. I'm at an all-time low allocation percentage in the US stock market and considering pulling more out still. Full on casino vibes at this point.
  - mancerayder 5mo ago
    It's doubled in five years while inflation's gone up by 30+ percent. Where exactly is there to hide? Not gold - that peaked and went down a lot. Let's not talk about BTC, either. Real estate? You've got taxes on that in the US, it's how our governments can pretend to not tax us as much as in Europe while still taxing us as much as in Europe (property tax goes to schools) What's left?
    - rapind 5mo ago
      I mean, gold is up significantly more than then broad market since Trump took over, but that doesn’t mean you should gamble on it continuing. I don’t trust real estate either. Seems like anything with a middleman is setting record levels of grift right now. I don’t trust the industries reports. No one is regulating or checking numbers. I shifted into more bonds. Probably a bit early, but I’m not a pro. I’ve just lost trust in the market which no longer seems tied to reality or at least my limited understanding of reality. Staying in it just feels yolo atm.
- chasd00 5mo ago
  > The fact that the indexes don't have our back is a huge problem how could an index fund possibly have anyone's back? It's in index of the top 500 publicly traded companies. that's all. If SpaceX or Tesla or Anthropic or anyone else fall out of the top 500 then they fall off the index by definition. I think a lot of these comments are coming from extreme emotions associated with AI and Elon Musk and not so much the way things work and will play out.
  - gleenn 5mo ago
    Because they are breaking all their own rules by removing the seasoning and profitability requirements to fast-track this stock in.
  - SilasX 5mo ago
    No, that's not all. They had additional criteria that they changed right when big-name companies wanted to get added. Now, if they had historically gone by pure market cap, and these companies met that, then you'd have a point.