Key insights
- The author expresses concern that the increasing number of large IPOs, potentially including SpaceX, may distort passive investment funds like Vanguard's FTSI Global All-Cap. This could lead to these funds holding overvalued tech stocks, raising fears of a future market crisis, particularly for US pension funds and 401(k)s. The author questions the fairness of the current market system.
Regarding the spaceX IPO. The rules have changed, I am not sure I trust my main fund (Vanguard FTSI Global all-cap) will represent the market anymore but just be a bunch of overvalued borderline fraudulent tech stocks (with the other massive ipos on the way too).
Tim Hales philosophy kind assumes beating unpredictability within a system which is set up fair. But now I don't think the system is set up fairly.
Why isn't USA freaking out it's their pension funds and 401K which are going to end up bag holding? Does anyone else think we are sleepwalking into a crisis here?