Let's say you're hungry for a sandwich

Let's say you're hungry for a sandwich(beige.party)

39 points by colinprince 4 hours ago | 9 comments

"every single person with a retirement account, or student savings account, or mutual fund, will be forced - not asked, not suggested - required by law, to buy SpaceX stock."

Anyone know what she means here? Does she mean this happens to those who will buy index funds? If so, nobody's being forced to buy an index fund. It's a choice made by the retirement account company.

skybrian 12 minutes ago |

> First, they will be automatically added to the NASDAQ 100. And because of that, every single person with a retirement account, or student savings account, or mutual fund, will be forced - not asked, not suggested - required by law, to buy SpaceX stock.

Nope, that's not how it works. Flagged.

TurdF3rguson 35 minutes ago |

> ...that they are going to immediately devalue as soon as they can. It's a classic pump and dump con. And you're the mark.

He's actually doing the opposite, there's a long lock-in period.

blevinstein 12 minutes ago |

Just move your funds from mutual funds tracking NASDAQ (if you own any) to a different fund tracking S&P. Inconvenient but not the end of the world. You still have about two weeks to do so; I did this last week. Then in 6+ months when lockups expire and insiders have dumped, you can move money back if you'd like.

Also, SpaceX only sold a tiny portion, and Elon is only a trillionaire based on unrealized value of unsold stock. If it crashes before he sells any, he might go back to being a "normal" centi-billionaire.

ebiederm 1 hour ago |

Yeah no. Not really.

That is what was tried. The S&P 500 didn't play along.

A comparatively small number of index funds & retirement accounts that use them will get caught. The majority won't.

exmadscientist 1 hour ago | |

Right -- if you're invested in the NASDAQ 100 (most people aren't, directly or indirectly), get angry. Or get out, if you can and it's not too late.

Everyone else has dodged this bullet. I'm surprised, pleasantly, that S&P et al actually made the right choice here.

lovich 1 hour ago | |

The Nasdaq is small?

skybrian 11 minutes ago | | |

The Nasdaq exchange is important. The Nasdaq index, not so much.

dragontamer 34 minutes ago | |

VTI and Nasdaq played along.

VTI arguably because they must play along, being a "total market fund". Nasdaq changed their rules and then force bought 3x more than usual.

These are NOT small funds. Rather significant parts of the US Economy (VTI, QQQ, among many other ETFs and derivatives) were force-bought in last week, and we are now all in for the ride to watch that portion of our money disappear.

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S&P500 is an important player who managed to avoid SPCX (1 year rule + requirements of profitability, of which SPCX isn't profitable yet so... lots of disqualifications here). So we have to give credit where credit is due.

VTI / Vanguard Total Market is a grey case. I once believed in it but now with SPCX and other abusers (Anthropic and OpenAI) clearly aiming to specifically screw VTI's strategy over, it might be finally time to call it quits and leave VTI behind. I don't know for what though.

Nasdaq doubling down and specifically changing their rules to help this whole crap is the ultimate level of disgusting. VTI is just being consistent with their strategy. Nasdaq is making special exceptions explicitly for these cases.