Key insights
- The author suggests that the recent surge in space-related stocks due to new space ETFs is unsustainable, driven by retail investor hype. They recommend selling these stocks to the ETFs before a potential correction, labeling retail investors as "exit liquidity." The author expresses skepticism about the long-term viability of space-related businesses and suggests investing in RDDT instead. This could signal a short-term bearish sentiment towards space-related stocks.
With all these new space ETFs popping up, premarket volume on space related stocks has everything pumping for the last few weeks, as mutual fund limited investors like retirement accounts and boomers who can’t read pump money directly into these ETF’s. And why not; we are seeing everyone talking about space so it must be a good investment, right? With this type of inflows to anything space related prior to SpaceX’s IPO, now is the time if you hold these companies to make the ETF’s your bitch and get out before the rug gets pulled. Give the boomers your crap space stocks that make no money, Make them the exit liquidity this time. Space is cool but no one is doing Star Wars shit, they are just launching satellites and talking about building data centers in orbit which would be silly. Ask an engineer. Good luck. I’m just going to buy RDDT since I spend all my time here, going to sit this space race out.