What do we think of the index listing rules getting relaxed for the SpaceX IPO?

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About to get our 401Ks robbed when this thing craters

upliftingsmart

Exactly - this is a burdened asset: basically Red Lobster post-PE acquisition

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SpaceX is expected to be about 0.5% of the sp500 when it becomes part of the index.

A better question is how to protect yourself from ragebait and politics, because 0.5% is not material.

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Of course it is. It’s one weird trick that lets large companies use artificial scarcity to transfer value from index funds into their pockets. It starts with Spacex then the AI companies then anyone who can convince underwriters to overprice their stock. This is bad.

They won’t do it. At least not the S&P.

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Smarter heads prevailed.

https://www.marketsmedia.com/sp-does-not-change-megacap-eligibility-for-indices/

Based on S&P DJI’s Index Committee review of the markets and after consideration of responses received from a wide range of market participants, no changes will be made to the eligibility criteria including financial viability screens, seasoning period, or minimum IWF, for the S&P 500, S&P MidCap 400, or S&P SmallCap 600 as a result of the S&P Dow Jones Indices consultation on the treatment of MegaCap companies. Accordingly, there will be no changes to existing methodology for this index family

They’re doing it to prop up all the AI companies so they don’t go bust like the dot com bust. The change in the rules were probably straight from the government. Once again, wall streets losses get socialized on to main street

The markets are rigged

S&P decided not to waive the rules so there’s that

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