Key insights
- An investment strategist believes SpaceX's IPO is being rushed, suggesting investors should instead focus on owning Tesla as a proxy. The strategist applauds S&P's decision not to change rules to include SpaceX, citing consistency and potential liquidity issues. The opinion does not present a strong bullish or bearish case for the broader US equity market.
Humilis Investment Strategies chief investment officer and CEO Brian Belski chats with Yahoo Finance's Julie Hyman about why he won't be buying SpaceX (SPAX.PVT) when it goes public.
Normally and historically, I've looked at IPOs and said, I'm going to wait a year, because I want to see four full quarters on how they talk to the public markets. But we know how they talk to the public markets because we have a litmus test in Tesla.
Right.
Yeah.
And so our view on this, um and we've said this publicly and we've said it for months now, is that our way into SpaceX is to own Tesla.
Do you think SpaceX is going to buy Tesla?
I think they're going to I think that ultimately the our call on that ultimately has been for several months now is that they're going to merge.
Yeah. Okay. So that's so you don't feel like you need to own SpaceX.
No, I don't I don't in life I don't like to make make decisions based on pressure.
Mhm.
And I'm not going to be pressured into buying buying a company because it's been rushed in the index. And I do think it's being rushed into the index.
Do you think S&P then made the right call in not uh changing its rules to include it?
I do.
Yeah.
I do. Because at the end of the day, um, um there's a there could be a liquidity issue, but then going back too, there's lots of dry powder on the retail side and the private wealth side. But I think consistency is the key. Consistency in the key and I applaud S&P for what they did.