Key insights
- The author expresses concern about the potential impact of upcoming large IPOs (SpaceX, Anthropic) and high valuations of existing companies (Tesla, Palantir) on the Nasdaq, particularly QQQ. They anticipate ETFs will overweight these companies, leading to potential downside risk for QQQ holders. The author is considering shifting away from growth ETFs towards more customized diversification strategies, reflecting a bearish sentiment towards the Nasdaq's composition and future performance.
SpaceX is IPOing, Tesla and Palantir have crazy valuations, Anthropic is IPOing later this year...
https://www.investors.com/news/spacex-ipo-nasdaq-anthropic-openai-index-investing/
Especially with the fast-track changes, tons of ETFs are going to pull these companies in and weigh them way heavier than I think a lot of us like. QQQ holders might be in for a rough landing.
I don't like it. I've always been a growth ETF investors but I'm going back to modifying and structuring diversification the way I want.
Wealthfront, Frec, Wallace Finance, or Schwab? I'm trying to find ETF modification without huge minimums. I might end up building from the ground up with M1 Finance if nothing else has what I'm looking for.
Anyone else have the same idea? How are we feeling about this?