If you are a passive investor you might want to read up on the goofy rules that are going to force massive purchases of SpaceX once it goes public for certain index funds. Great news if you own SpaceX now, not so great if you want to avoid anything Elon.
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@paul there's nothing you can do about it really other than "not use index funds" and "not have a pension". By law they're going to be forced to re-balance the assets dump a HUGE amount of American's retirements into Space-X. It's such a blatant scam, especially as normally it would take much longer for this to happen but Elon's greasing the wheels in government and with NASDAQ, etc
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@paul don't forget they have to buy *at any price*. If SpaceX doesn't issue enough shares, they have to beg Elon to issue new shares any price he demands.
ANY.
PRICE.
This is gonna be ugly.
ANY.
PRICE.
This is gonna be ugly.
@paul @mackuba no no the funds don't have to buy until December(?), there are detailed articles covering this but I don't have my links handy right now tho
edit: think about it. If they had to buy immediately investors/hedge funds can calculate what the expected movement will be for everyone in the index and trade on that knowledge
edit: think about it. If they had to buy immediately investors/hedge funds can calculate what the expected movement will be for everyone in the index and trade on that knowledge
@feld from that article.
@paul you didn't follow to this part:
> To hit the December 18, 2026 quarterly rebalance date for the Nasdaq 100, SpaceX needs to IPO around mid-June.
The December rebalance is actually called the reconstitution and the weight is recalculated based on the full market cap. That's the big one.
edit: so some inflows will happen after the 15 days but the "weighted proportional of investment you have to have in SpaceX in funds like QQQ (?)" won't trigger until December. They can't enforce it immediately after listing because of the IPO bubble is my understanding
> To hit the December 18, 2026 quarterly rebalance date for the Nasdaq 100, SpaceX needs to IPO around mid-June.
The December rebalance is actually called the reconstitution and the weight is recalculated based on the full market cap. That's the big one.
edit: so some inflows will happen after the 15 days but the "weighted proportional of investment you have to have in SpaceX in funds like QQQ (?)" won't trigger until December. They can't enforce it immediately after listing because of the IPO bubble is my understanding
@feld getting out of index funds (at least ones that are forced to buy it) seems like a pretty reasonable option to me, at least for retirement accounts.
@paul @feld MSCI World uses a free float market cap, so spacex will barely change the weights there
Also ETFs *try* to replicate given indexes and they usually have their own rebalance timings, so it will really depend on the provider if and when You'll have IPOed company in Your portfolio
I don't know how it looks on the USA-investor side, but in Europe it's not that bad if one's not invested directly in S&P or NASDAQ indexes