BREAKING FINANCIAL NEWS: Reuters | SpaceX blocked from early US benchmark index entry as S&P reaffirms existing rules
THIS IS A HUGE VICTORY FOR INVESTORS AND YOUR RETIREMENT
"S&P Global said on Thursday it was not changing the requirements for entry into its major indices, dealing a setback to Elon Musk's SpaceX by effectively ruling out a swift entry for the world's biggest-ever IPO into the benchmark S&P 500 index."
1/
S&P 500: No Fast Track For SpaceX
"But S&P said "exceptions to the financial viability, seasoning, and IWF (investable weight factor) requirements should not be granted solely based on market capitalization".
"To be included in the S&P 500, a company must be profitable under Generally Accepted Accounting Principles in its most recent quarter as well as for the sum of its most recent four quarters, according to one of the rules S&P left unchanged."
2/
S&P 500: No Fast Track For SpaceX (cont)
"S&P consulted with investors about shortening the time a megacap company must be publicly listed before joining its indexes, waiving minimum float requirements and removing its profitability requirement."
"The S&P 500 is Wall Street's most widely followed benchmark. Passive S&P 500 index funds with trillions of dollars in assets would have been forced to buy up SpaceX shares had rules been changed to admit it to the index."
3/
S&P 500: No Fast Track For SpaceX (cont)
If S&P is serious about not removing the profitability requirement, it's very possible that SpaceX will never meet eligibility requirements for the S&P 500.
This is absolutely catastrophic for Musk and Nasdaq's Mega-Cap Squeeze (https://mastodon.online/@mastodonmigration/116693970097030371) as it likely requires the huge pool of S&P backed index funds forced purchases to keep the squeeze going.
It will be interesting to see what happens now with Nasdaq, Russell and CRSP
Biggest in modern market history
ABSOLUTELY
Yes. Without the forced buying the huge valuation would probably not hold up.
QQQ is Nasdaq and it will fast track SpaceX
@mastodonmigration @skewray Exactly. This is that Geordi image expressing disgust at QQQ (the symbol for the Invesco QQQ index fund, which tracks the NASDAQ 100) and approval of SPX (the symbol for the S&P 500 index).
SpaceX’s intended symbol will be SPCX.
Got it. Completely agree.
Now it is important to focus our ire on Nasdaq, CRSP and Russell.
Check out this smug bastard. NASDAQ CEO Nelson Griggs knows just what he's doing...
YAY!!!!!!
a huge relief to those of us who are too tired and/or too disabled to lose our retirement because there's no going back to work & getting it back...
Oh you still do!
Nasdaq (QQQ), Russell and CRSP backed indexes (including the super popular Vanguard Large Cap Index) still have the fast track rules. In the case of CRSP they will be forced to buy 5 days after the IPO.
@mastodonmigration @jeremy_degroot
So one method would be to simply choose medium cap, yes?
@ProcessParsnip @jeremy_degroot
Medium Cap and Value are probably safe. As are Ex-US international Funds
@mastodonmigration @jeremy_degroot
but for those of us in an S&P index fund, it's a breath of relief
@mastodonmigration Well, that saves me from a bunch of very hurried 401(k) reallocation this weekend.
Still, might be time to move to a nice European-market index.
Last week, Elon Musk’s SpaceX released its IPO prospectus in preparation for going public in June, and now that experts have had a chance to pore through its 277 pages, one analyst has bad news for interested investors: the company is a “trainwreck.”This is according to Ed Elson, a prominent financi...
Meanwhile ...
💯 CRSP, Russell and FTSE US large cap
https://mastodon.online/@mastodonmigration/116695283535505568
@paelnever we need a date in your prediction to be able to allocate credit later. When will it pop the bubble? tonight? A week? Month? Year? Give us a clue ;-)
@mastodonmigration I finally figured out how to tell this story and now I have to change it again lol
but good, because _goddamn_
Excellent news!!!
Only half joking:
Are the Pedocriminal States of America already so far down the authoritarian path that the S&P people have to fear for their livelihoods or even lives?
Sadly, I wouldn't be surprised.
Yes, they are expected to pull the same stunt. And Anthopic.
@mastodonmigration
An astonishing win for regularity.
Apparently promises of that amount of money can only bend rules if the people following the rules don't smell bullshit.
@mastodonmigration I'm just glad my retirement (it there ever will be one at all) is not based upon shares and indices!
@mastodonmigration Nice!
Unfortunately many other indices have already rewritten their rules to fast-track the scam, AFAIK.
Chris
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