ACTION: Call your financial manager about SpaceX IPO ASAP
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@chertridge @mastodonmigration do you have the name for it? I had seen people were considering it, but had not seen an actual fund
@carstenfranke @mastodonmigration
Correction: I was blending two ideas in my head.
Defiance Large Cap Ex-Mag 7 ETF is an exchange traded fund made up of the stocks in the S&P500 minus the top 7 tech stocks. It is no equally weighted. I haven't found a mutual fund structured the same way but there probably is one out there.
Invesco ESG S&P500 Equal Weight ETF is an exchange traded fund with about 138 stocks from the S&P500 after application of a so called ESG filter, only letting through companies that meet someones requirements for being better regarding Environmental, Social and Governance issues. There IS a mutual fund that mirrors this ETF. Confession: we did not dive into the list of 138 stocks and we know that many companies do some serious green-washing to get a better ESG grade. But it is something.
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What is interesting is that this perversion of the marketplace, that is, the forced acquisition by index funds, is what in effect artificially, and perhaps momentarily, creates the incredibly inflated valuation. To put it otherwise, the certainty that there will be a huge amount of buying, no matter how inflated the valuation, is what enables insiders to price it so high. It is a completely artificial construct.
@mastodonmigration It's been going on for a while with app companys with no profit being valued in the billions but now it's just gone crazy like tulips in the 17th century.
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@mastodonmigration It's been going on for a while with app companys with no profit being valued in the billions but now it's just gone crazy like tulips in the 17th century.
Yup. It is indeed a huge Ponzi scheme. Everyone makes money until the bottom falls out.
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Yup. It is indeed a huge Ponzi scheme. Everyone makes money until the bottom falls out.
@mastodonmigration Last one out loses.
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@mastodonmigration Tesla is very over valued as well.
I'd value SpaceX at 90 billion tops this is not chump change it's half of Boeing.@Luna @mastodonmigration Tesla is overvalued but at least it's profitable and producing cars some people buy. It's a real company as much as I dislike their owner.
SpaceX is being valued on their AI branch which *no one* is using as if it was worth trillions while it's losing money every quarter to build something no one as ever asked for. -
@Bowreality @mastodonmigration @Pinchy63 We do not have IRAs and 401ks here in Canada AFAIK.
Though, if your pension fund (or RSP/RRSP) has the Nasdaq listed it's possible. Only way to find out would be to ask I suppose.
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ACTION: Call your financial manager about SpaceX IPO ASAP
Background: SpaceX has filed to go public at a grossly overvalued $1.8 Trillion. The fundamentals in no way justify inclusion in index funds, BUT NASDAQ rules were CHANGED so that it will be included. As a result 401Ks and IRAs will AUTOMATICALLY buy the stock, giving this worthless company your money. It is the greatest grift of all time.
To Do: Contact your financial firm immediately. More below...
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Another source:
> the NASDAQ stock market just changed its rules around how it organizes its index of important firms, the NASDAQ 100, to allow SpaceX to get in early. Many index funds automatically mimic the Nasdaq-100, which means that NASDAQ is ensuring that huge amounts of investor capital will flow into the company. Virtually every investor in America will end up owning a piece, whether they like it or not. Companies used to have to trade for three months, now it’s just 15 days. And the company had to have at least 10% of its shares publicly trade, but that’s no longer a requirement.
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@Bowreality @mastodonmigration @Pinchy63 We do not have IRAs and 401ks here in Canada AFAIK.
Though, if your pension fund (or RSP/RRSP) has the Nasdaq listed it's possible. Only way to find out would be to ask I suppose.
@Javensbukan @mastodonmigration @Pinchy63 Yeah I was wondering if there is anything about Canadian funds defaulting to buy crap like that as it was boosted by a Canadian.
I have limited US (and tech, because AI) stocks in my funds as much as possible. However, it seems impossible to invest in a balanced portfolio with 0% US in the limited selection of funds we get to pick from. It’s part of my benefits program so I can only pick what they offer in the plan.
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@Javensbukan @mastodonmigration @Pinchy63 Yeah I was wondering if there is anything about Canadian funds defaulting to buy crap like that as it was boosted by a Canadian.
I have limited US (and tech, because AI) stocks in my funds as much as possible. However, it seems impossible to invest in a balanced portfolio with 0% US in the limited selection of funds we get to pick from. It’s part of my benefits program so I can only pick what they offer in the plan.
@Bowreality @mastodonmigration @Pinchy63 Yeah basically the same here. I think mine is something like 95% Canadian buuuut that's as about as domestic as I could get it without doing it all on my own, and I do not have the time or knowledge to do that
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ACTION: Call your financial manager about SpaceX IPO ASAP
Background: SpaceX has filed to go public at a grossly overvalued $1.8 Trillion. The fundamentals in no way justify inclusion in index funds, BUT NASDAQ rules were CHANGED so that it will be included. As a result 401Ks and IRAs will AUTOMATICALLY buy the stock, giving this worthless company your money. It is the greatest grift of all time.
To Do: Contact your financial firm immediately. More below...
1/
@mastodonmigration luckily I don't need to call my financial manager because I don't have one. I manage my finances on my own since 1988 and it's at least a couple of decades Im not invested in funds. Just plain stocks, bonds and a thematic etf on water atm.
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@Bowreality @mastodonmigration @Pinchy63 Yeah basically the same here. I think mine is something like 95% Canadian buuuut that's as about as domestic as I could get it without doing it all on my own, and I do not have the time or knowledge to do that
@Javensbukan @mastodonmigration @Pinchy63 I get a list of funds to pick from. The selection is mine. I got about the same. Around 95% of non-US now. But even funds in the “Canadian” category have 1% US for example. I also got international ones in the mix and there is a portion USA included. The only “Global” labelled fund was something like 37% USA and heavy on tech. Didn’t pick that. (1/3)
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@Javensbukan @mastodonmigration @Pinchy63 I get a list of funds to pick from. The selection is mine. I got about the same. Around 95% of non-US now. But even funds in the “Canadian” category have 1% US for example. I also got international ones in the mix and there is a portion USA included. The only “Global” labelled fund was something like 37% USA and heavy on tech. Didn’t pick that. (1/3)
The AI bubble is a concern for me.
I also wish the details would be better on what “industry” is. They only list the top 10 companies. I would like some funds that are heavy on defence as I think these are going to start churning. (2/3)
@Javensbukan @mastodonmigration @Pinchy63 -
The AI bubble is a concern for me.
I also wish the details would be better on what “industry” is. They only list the top 10 companies. I would like some funds that are heavy on defence as I think these are going to start churning. (2/3)
@Javensbukan @mastodonmigration @Pinchy63Outside of benefits I invest directly in stocks and heavily in Canadian defence. My best pick so far was TeleSat which went from $34 last year around this time (when I purchased) to $80 now. (3/3)
@Javensbukan @mastodonmigration @Pinchy63 -
More Background: The Danes are having none of this...
Mastodon Migration (@mastodonmigration@mastodon.online)
Financial News: A Danish pension fund has blacklisted SpaceX, calling it grossly overvalued with catastrophic governance "...concerns echo those of far larger institutions. In May, the heads of the California Public Employees’ Retirement System, the New York City Retirement Systems, and the New York State Common Retirement Fund, which collectively manage more than $1 trillion, sent a joint letter to Musk calling SpaceX’s governance “extreme.” https://thenextweb.com/news/danish-pension-spacex-blacklist-governance-overvalued #SpaceX #SpaceXIPO
Mastodon (mastodon.online)
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More Background: Gizmodo | Wall Street Is Already Bending Its Rules to Suck More People Into SpaceX’s IPO
SpaceX [will get] added to major indexes shortly after its IPO... [giving] regular people exposure to Musk’s currently unprofitable company through their retirement accounts...
That is a huge shift from how IPOs have traditionally been handled...
After the dot-com crash, index administrators started putting guardrails in place...
Wall Street Is Already Bending Its Rules to Suck More People Into SpaceX’s IPO
New index fund rules could mean ordinary investors end up owning a piece of SpaceX whether they want to or not.
Gizmodo (gizmodo.com)
/12
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R relay@relay.infosec.exchange shared this topic
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@Javensbukan @mastodonmigration @Pinchy63 Yeah I was wondering if there is anything about Canadian funds defaulting to buy crap like that as it was boosted by a Canadian.
I have limited US (and tech, because AI) stocks in my funds as much as possible. However, it seems impossible to invest in a balanced portfolio with 0% US in the limited selection of funds we get to pick from. It’s part of my benefits program so I can only pick what they offer in the plan.
It looks like CAGE will filter out SpaceX based on its inclusion criteria. It's similar to VEQT but has filters for profitability and is weighted slightly away from the mega high cap companies.
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Draft script: "I am very concerned about the SpaceX IPO. I understand funds I own may soon automatically be forced to buy stock in this grossly overvalued company with horrendous corporate governance concerns. I am requesting an urgent meeting to spell out for me any exposure. I am sharing this article, and would appreciate you pass it on to your analysts and be prepared to discuss the details with me. Can we set up a call for tomorrow?"
SpaceX IPO Index Inclusion: How Rule Changes for SPY, QQQ, and IWM Force Index Funds to Sell Stocks and Buy SpaceX
Breaking down how SpaceX's $75B+ IPO is reshaping benchmark indexes and forcing index funds to reallocate trillions in assets - implications for passive investors.
SpotGamma™ (spotgamma.com)
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@mastodonmigration I left the stock market and went into something more secure, less risky, in 2016.
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Thanks for contacting them. The more of us who do the better!
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ACTION: Call your financial manager about SpaceX IPO ASAP
Background: SpaceX has filed to go public at a grossly overvalued $1.8 Trillion. The fundamentals in no way justify inclusion in index funds, BUT NASDAQ rules were CHANGED so that it will be included. As a result 401Ks and IRAs will AUTOMATICALLY buy the stock, giving this worthless company your money. It is the greatest grift of all time.
To Do: Contact your financial firm immediately. More below...
1/
@mastodonmigration thanks for putting this together, will need to stop hyperventilating before proceeding
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@mastodonmigration thanks for putting this together, will need to stop hyperventilating before proceeding
Agreed. It is one thing to understand what they are up to. Another thing entirely to figure out what, if anything, to do in response.
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More Background: Gizmodo | Wall Street Is Already Bending Its Rules to Suck More People Into SpaceX’s IPO
SpaceX [will get] added to major indexes shortly after its IPO... [giving] regular people exposure to Musk’s currently unprofitable company through their retirement accounts...
That is a huge shift from how IPOs have traditionally been handled...
After the dot-com crash, index administrators started putting guardrails in place...
Wall Street Is Already Bending Its Rules to Suck More People Into SpaceX’s IPO
New index fund rules could mean ordinary investors end up owning a piece of SpaceX whether they want to or not.
Gizmodo (gizmodo.com)
/12
More Background: Gold and Geopolitics | Honest Graft
"Right. So. The Nasdaq-100 used to require a seasoning period - newly listed companies waited anywhere from three months to a year before getting swept into the index. The idea being: let the price actually get discovered. Let float build. Don’t force $527 billion in ETF assets to mechanically pile into something that went public last Tuesday... That rule? *poof* Gone with the wind"
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