For SpaceX (and possible the others like OpenAI and Anthropic), stock market rules were changed recently.
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For SpaceX (and possible the others like OpenAI and Anthropic), stock market rules were changed recently. Since they changed the rules to force over $30 trillion in passive 401k and retirement fund money to buy SpaceX, OpenAI, and Anthropicat IPO valuations giving exit to big VCs and others. At the end of the day people who put or government backed pension fund put small money every month are going to pay for this mess. Such is evilness of these AI companies.
Source https://xcancel.com/Hedgeye/status/2060435253928604065
@nixCraft I am, once again, baffled at how this isn't a major story. The changes to the nasdaq rules were discussed on some podcasts when the first rumblings around the IPO first appeared.
It's an absolute scandal. It's madness to expect these insane valuations to hold. This entire thing is about cashing out a bunch of rich people and leaving pensions and misguided Elon fans holding the bag. -
@nixCraft
This is nuts.
Like many, my (UK) pension is in a 'default' tracker that will automatically get pulled in to SpaceX trading as a result of this change. That's not a risk I am willing to take.
So I now need to engage a financial advisor to switch away from this nonsense ASAP...@clanger9 @nixCraft (I am NOT authorised to give financial advice. This is what *I* did.)
Some time ago when the current US president was voted in I moved almost all my/family investments away from the US (except some 'active' funds). Some of that money went into a cheap L&G UK tracker, which avoids this particular issue. Moving funds from a US tracker to a UK tracker with a big name and low fees may not require a full IFA flex...
(I am going to re-check that I don't have exposure to this.)
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For SpaceX (and possible the others like OpenAI and Anthropic), stock market rules were changed recently. Since they changed the rules to force over $30 trillion in passive 401k and retirement fund money to buy SpaceX, OpenAI, and Anthropicat IPO valuations giving exit to big VCs and others. At the end of the day people who put or government backed pension fund put small money every month are going to pay for this mess. Such is evilness of these AI companies.
Source https://xcancel.com/Hedgeye/status/2060435253928604065
Marvel at the efficiencies of the private market. So glad neolibs killed pensions in the 70s and replaced them with 401ks, it's worked out so well!
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@clanger9 @nixCraft (I am NOT authorised to give financial advice. This is what *I* did.)
Some time ago when the current US president was voted in I moved almost all my/family investments away from the US (except some 'active' funds). Some of that money went into a cheap L&G UK tracker, which avoids this particular issue. Moving funds from a US tracker to a UK tracker with a big name and low fees may not require a full IFA flex...
(I am going to re-check that I don't have exposure to this.)
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@clanger9 @nixCraft (I am NOT authorised to give financial advice. This is what *I* did.)
Some time ago when the current US president was voted in I moved almost all my/family investments away from the US (except some 'active' funds). Some of that money went into a cheap L&G UK tracker, which avoids this particular issue. Moving funds from a US tracker to a UK tracker with a big name and low fees may not require a full IFA flex...
(I am going to re-check that I don't have exposure to this.)
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@brunogirin @clanger9 @nixCraft I have a personal pension (separate to my main one) that lets me choose between sub-funds, so I can exclude all US investments in there if I wish. Does your pension have any sort of similar scheme?
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@brunogirin @clanger9 @nixCraft I have a personal pension (separate to my main one) that lets me choose between sub-funds, so I can exclude all US investments in there if I wish. Does your pension have any sort of similar scheme?
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@DamonHD @nixCraft @brunogirin
Exactly. I'm normally a passive investor, but I can see that my pension is (by default) invested in a tracker fund that looks like it will automatically underwrite the SpaceX IPO - despite them never having turned a profit!
The only way to fix this is to transfer into another fund - which is not something I can (or should) do without professional advice... -
@brunogirin @clanger9 @nixCraft I have a personal pension (separate to my main one) that lets me choose between sub-funds, so I can exclude all US investments in there if I wish. Does your pension have any sort of similar scheme?
@brunogirin @nixCraft @DamonHD
I can choose any fund in my pension, but if I select anything other than the default, then "I'm on my own", apparently.
Given the opacity of many (most?) funds, I have no way of knowing what I'm investing in. Normally, I would trust the tracker to do its job, but changing the rules to benefit a single (high risk!) IPO totally breaks that trust.
Hence the need for professional help... -
@nixCraft have today sent an email to my pension provider about these rule changes and asking how I ensure my pension is not exposed to any nasdaq 100 index linked funds
There's this little Danish pension fund that may inspire them not to give you a funny look.
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For SpaceX (and possible the others like OpenAI and Anthropic), stock market rules were changed recently. Since they changed the rules to force over $30 trillion in passive 401k and retirement fund money to buy SpaceX, OpenAI, and Anthropicat IPO valuations giving exit to big VCs and others. At the end of the day people who put or government backed pension fund put small money every month are going to pay for this mess. Such is evilness of these AI companies.
Source https://xcancel.com/Hedgeye/status/2060435253928604065
@nixCraft Reducing the seasoning window means letting these obvious fraudsters cash out their private stock while the IPO issue forces the price up.
Then it will tank, because this company is UTTERLY WORTHLESS
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@brunogirin @nixCraft @DamonHD
I can choose any fund in my pension, but if I select anything other than the default, then "I'm on my own", apparently.
Given the opacity of many (most?) funds, I have no way of knowing what I'm investing in. Normally, I would trust the tracker to do its job, but changing the rules to benefit a single (high risk!) IPO totally breaks that trust.
Hence the need for professional help...@clanger9 @brunogirin @nixCraft I hear you, and I am not giving advice.
But just see if amongst your options in your pension is a simple UK tracker fund, and if there are significant costs switching from the default to it (and back again if this issue goes away somehow).
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@clanger9 @brunogirin @nixCraft I hear you, and I am not giving advice.
But just see if amongst your options in your pension is a simple UK tracker fund, and if there are significant costs switching from the default to it (and back again if this issue goes away somehow).
@brunogirin @nixCraft @DamonHD
Yeah, that's my plan. Probably switch to non-bubble non-US / sustainable or infrastructure funds for a bit, then switch it back when all this blows over. Will see what the professionals recommend... -
37% US equities top chunk, but highest sub-fund is "Aegon BlackRock US Equity ESG Screened and Optimised Index" (17%) which may limit your exposure to passive trading for SpaceX+AIs to under about 20%. But I am NOT an advisor, finance professional, etc. Your pension fund should explain if you ask about your specific worries.
Aegon Growth Tracker (Flexible Target) (ARC) Pn Fund factsheet | Trustnet
The latest fund information for Aegon Growth Tracker (Flexible Target) (ARC) Pn, including fund prices, fund performance, ratings, analysis, asset allocation, ratios & fund manager information.
Trustnet (www.trustnet.com)
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@brunogirin @nixCraft @DamonHD
Yeah, that's my plan. Probably switch to non-bubble non-US / sustainable or infrastructure funds for a bit, then switch it back when all this blows over. Will see what the professionals recommend...@brunogirin @nixCraft @DamonHD @clanger9
I'm not chasing max returns here.
Just need to maintain stability, which I sense I'm not gonna get if I do nothing. 🤪 -
37% US equities top chunk, but highest sub-fund is "Aegon BlackRock US Equity ESG Screened and Optimised Index" (17%) which may limit your exposure to passive trading for SpaceX+AIs to under about 20%. But I am NOT an advisor, finance professional, etc. Your pension fund should explain if you ask about your specific worries.
Aegon Growth Tracker (Flexible Target) (ARC) Pn Fund factsheet | Trustnet
The latest fund information for Aegon Growth Tracker (Flexible Target) (ARC) Pn, including fund prices, fund performance, ratings, analysis, asset allocation, ratios & fund manager information.
Trustnet (www.trustnet.com)
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For SpaceX (and possible the others like OpenAI and Anthropic), stock market rules were changed recently. Since they changed the rules to force over $30 trillion in passive 401k and retirement fund money to buy SpaceX, OpenAI, and Anthropicat IPO valuations giving exit to big VCs and others. At the end of the day people who put or government backed pension fund put small money every month are going to pay for this mess. Such is evilness of these AI companies.
Source https://xcancel.com/Hedgeye/status/2060435253928604065
The freight side of this matters too. When labor pressure rises, the people moving the goods usually feel it before the headline cycle catches up.
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For SpaceX (and possible the others like OpenAI and Anthropic), stock market rules were changed recently. Since they changed the rules to force over $30 trillion in passive 401k and retirement fund money to buy SpaceX, OpenAI, and Anthropicat IPO valuations giving exit to big VCs and others. At the end of the day people who put or government backed pension fund put small money every month are going to pay for this mess. Such is evilness of these AI companies.
Source https://xcancel.com/Hedgeye/status/2060435253928604065
@nixCraft More like techbros trying to beat investor expectations to profitability OR AGI to prevent a bubble pop because they know people will be howling to collect their heads....And the larger finance system nervously going along with it because they know that this has gotten so large it'll crash world markets kicking off a depression that could potentially last decades. Everyone's on the bus. No ones really in control. Strange days, eh?
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