Comment by pj_mukh
8 hours ago
Okay before we set off the alarm though, can someone tell me What percentage of these index funds will be SPCX and TSLA?
Like if both these stocks become penny stocks what happens to the indices?
Isn’t the whole point that they are hedged across the whole market?
As of January, TSLA was somewhere around 2.3% of the S&P [1]. Because SpaceX will have so little float available, it would be somewhere around 0.7% if included.
[1] https://en.wikipedia.org/wiki/S%26P_500
Ya, but this is a proof-of-concept rip-off. The fact that the indexes don't have our back is a huge problem.
It's only a problem for the ones left holding the bag. I'm at an all-time low allocation percentage in the US stock market and considering pulling more out still. Full on casino vibes at this point.
Assuming $75B float for SpaceX
* S&P500: 0.08% – 0.12%
* NASDAQ-100: 0.47% – 0.70%
* Russell 1000: 0.1%
A key point to look out for is how much money Anthropic and later OpenAI will go for in their IPO, which will utilise the same (updated) rules.