Experts sound alarm over Elon Musk's 'coup' that's 'about to rob your 401k'

[SamuelTheThird]

Raw Story isn't always the best source, but this seems legit

https://www.rawstory.com/elon-musk-2676979515/

“The richest guy on the planet is about to rob your 401K,” warned content creator Zack Nelson, writing in a social media post Sunday on X to his nearly 1 million followers.

In a move that one of the United States’ largest unions warned “defies financial logic,” private index providers – the companies that decide what stocks go into major market indexes – have fast tracked SpaceX to be added to indexes like the S&P 500 and the Nasdaq-100, indexes that millions of Americans buy into via their retirement accounts.
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“The world's richest centi-billionaire oligarch used his power to change the rules, so he could dump his garbage company (which is cartoonishly overvalued, unprofitable, and incinerating cash) on retail investors, using trillions of dollars in retirement funds as exit liquidity, all in order to become the first trillionaire,” he wrote in a social media post on X.

[bucolic_frolic]

1. Rumors amongst YouTube gurus say the whole market is being propped up for the Space-X IPO

All the big tech stocks have been rolling for weeks. Every day jump up and trend the rest of the day. No selling. Ever.

I don't doubt Musk is being coddled here.

[yellow dahlia]

2. People need to read this. The alarms should indeed be blaring. Outrageous!!!

There aren't enough WTF's in the world to cover this.

Is there anything anyone can do about this?

[dickthegrouch]

3. Current S&P rules say an issue must have been public for a year before it can be included as part of the index.

So we have a little bit of time, assuming they don't just change the rules.
My advisor just told me his company (they're big) "doesn't like" the Space-X IPO for various reasons.
Which is encouraging.

[SamuelTheThird]

5. SpaceX IPO could hit popular index funds -- and your 401(k) -- in as little as 5 trading days as indexes relax their rules

https://finance.yahoo.com/markets/stocks/articles/spacex-ipo-could-hit-popular-101500534.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMYkxUKKB3WeiDlAmdv58UVBwvW_ltZ0Mb-uZ5qJsatdhEVxt7fehKBC81Mnf3hYV_7ie_jxABKorocJk5Homa_g84HUztdNhGaYuX5zgjcIBpK1rq7FUtpEMQGINBw61e9MfunAerRx2zA6qI4QWRt_wCDiYR0X12ox-KS76zH0

[LudwigPastorius]

4. One year requirement for the S&P is going to be cut to 6 months, and NASDAQ will allow...

SpaceX to join the index after just 15 days.

Plenty of time for Musk to cash out ahead of a crash and move to a bunker in Argentina, like his buddy Thiel.

[PatSeg]

6. Hey now

What could be more important than Musk becoming a trillionaire?

This is absolute lunacy. What a ridiculous goal to set. Something is seriously wrong with our species?

[dave99]

7. a piece of metal needs to hit a certain skull

[SamuelTheThird]

8. More Muskrat Fuckery detailed

https://www.ibtimes.co.uk/michael-burry-ai-bubble-warning-1800028

[al bupp]

9. Good Video by A More Perfect Union on this Topic

[pat_k]

10. Screw this. I have some XMAG ETF. It sounds like SpaceX wouldn't be excluded under their rules.

I moved some money from Vanguard's S&P 500 index fund to XMAG ETF early last year.

XMAG tracks the performance of the S&P 500 while explicitly excluding the “Magnificent 7” stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla).

I did some poking around and since SpaceX will debut with an absurdly high market valuation, it will likely be included in XMAG.

So much for trying to stay away from overvalued AI/ tech bubble leaders.