Key insights
- The post expresses concern over a potentially inflated SpaceX IPO valuation and its impact on retail investors through index funds. It suggests that changes in Nasdaq index inclusion rules could lead to forced buying, bypassing price discovery and potentially harming 401k holders. The author questions the company's true worth and contemplates exiting index funds due to perceived market irrationality.
I don't understand how it can valued so fucking high. It basically dwarfs everything else. I have seen youtubers and redditors talk about how the 401k's will pay for it due to Nasdaq law changes to indexes, effectively skipping price discovery, which is terrifying. I can't imagine anyone actually believing it is worth that much, so it's like some big conspiracy to drain the public dry and concentrate it among the wealthy elite.
Is it time to exit indexes? Nobody can bet against it since irrationality and delusion trumps solvency, so should we just get the fuck out?