Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.

[iamnotu@mastodon.social]

@MissConstrue looking forward to the 'pump and dump'

[missconstrue@mefi.social]

@htpcnz Precisely this. This is about to be a massive theft of capital. Massive. Invisibly. But gone, none the less.

[missconstrue@mefi.social]

@slotos Yes! That was brilliant. And I'm so glad that graphic is the thumbnail. It's such an absurd comparison.

[missconstrue@mefi.social]

@iamnotU The churn is gonna look like feeding time at the gator tank.

[sibshops@mastodon.online]

@MissConstrue Time to dump nasdaq index funds, then.

[saanichguy@mstdn.ca]

@MissConstrue @shredder7579 @kevinashworth #frenchrevolution

[troy_frizzell@mstdn.social]

@MissConstrue

I’m 64, just about to retire and absolutely tied to these creepy weirdos.

I don’t care.

Burn it down.

I’ll take the hit. We have to end these leeches that are wrecking our culture.

I would happily give up my comfort to end that plague.

[beggarmidas@mastodon.social]

@MissConstrue Eliminate all investment? Perhaps not. But we CAN firewall a majority of it. It would require employees broadly discussing concerns with employers in small & medium enterprise about risky investments that broadly impact ALL of them, prompting moves to ESGs. For bigger setups weaponization of The Intransigent Minority Rule by having enough core employees & management sticking to their guns & up HR's ass with irritating frequency.

[decapitae@mastodon.social]

@MissConstrue Dump

[beggarmidas@mastodon.social]

@MissConstrue You could also start a petition drive asking the hedge funds to include an investment spread that avoids or only lightly invests in 'high risk' companies forcing premature/irrational market IPOs inclusion. Or hell, just call a spade a spade. Say "X Y Z are forcing high risk investment into medium & lower risk portfolio. We want an index option that specifically discludes companies X Y Z from the index. Get enough signatures on that, hedge fund managers will sit up & take notice

[beggarmidas@mastodon.social]

@MissConstrue One final thought on possible tactical approaches. For hundreds if not thousands of years smaller players could sometimes leverage the unlimited ego and ambition of larger players against each other. The techbros believe they are the gods of the market right now. That however, to Hedge Fund managers could be seen as encroachment on their union turf. Bringing big egos into conflict can create a lot of wiggle room for the rest of us.
...Just some thoughts. Better than doing NOTHING.

[tribactam@social.vivaldi.net]

@MissConstrue @iamnotU

when the guy doing the feeding falls in...

[artharg@mastodon.nl]

@MissConstrue Hmmm … so passive index funds will be forced to include the bloatstocks into their portfolios, right? But to make room for that, they will have to sell off much of their current portfolio. Which means downward pressure on all other stocks. Maybe time to buy some put options?

[missconstrue@mefi.social]

@ArtHarg I've heard a few analysts say something similar, but I don't have the courage to play the puts and shorts game. I'm more on the dividend aristocrat reinvesting for twenty years side of the board.

[missconstrue@mefi.social]

@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.

indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.

Simple Page

(www.investopedia.com)

[artharg@mastodon.nl]

@MissConstrue I never did shorts either. Too risky for my tolerance, since the losses are potentially unbounded. Puts and calls are safer: I stand to lose the cost of the option at most. What is actually fun is to buy call options when you sense a short squeeze coming up. Buying them “out of the money” makes them cheap and then when the short squeeze drives up the price of the asset, you can make a nice profit by selling the option.

[beggarmidas@mastodon.social]

@MissConstrue It's all very complicated, I suspect by intent to a degree. I mean, we're all pretty well agreed that Crypto is a giant ponzi and that hype around AI has brought in such a level of investment that it's creating it's own special gravity. It's textbook overvalued. Both Crypto & AI have drawn in SO much money, including many deep pockets normally more risk adverse. A bubble popping will almost immediately pop the other as people in a panic create a run cash in their chips.

[beggarmidas@mastodon.social]

@MissConstrue BTW: Love your nick. I had an idea for a character absolutely years ago who in the story had a public nom du guerre like Miss Take or Miss Demeanor or Miss Direction or Miss Teak. All very saucy, almost burlesque stage name adjacent for a screenplay I was working on.

[cadejohnson@toot.cat]

@MissConstrue
The point is valid, but the index weighting of the SpaceX stock is not directly determined by market value. Because the company will be mostly privately held, the index will have a weighting factor that reduces the SpaceX proportion of the index. The NASDAQ approach is "aggressive" so SpaceX will still have considerable impact (I think they use 30% of market value for corporation with under 10% public ownership, or something like that). The S&P indexes are less aggressive, and MSCI indexes even less (maybe only accounting the direct public market capitalization in the index?).

Interestingly, the SpaceX ipo is expected to depress the index in the prelude to ipo day because everyone knows index funds will be compelled to sell various other holdings at market price to buy ipo shares. Nobody wants to own shares they'll be forced to sell in a buyer's market.

@shredder7579

[cadejohnson@toot.cat]

@MissConstrue
It is worth mentioning that nobody is FORCED to buy or hold a NASDAQ index fund. If I owned such a fund, I'd move to the sidelines for a while (i.e. switch to a different fund) while these mega-ipo deals play out. fwiw