I think it is incorrect to place these corps in the same bucket. The scam here is SPCX. The only reason they are allowed to do this bs is because Nasdaq are greedy and wants this ticker on their stock exchange. The evaluation of SPCX is based on the AI leg. Not rockets, not starlink, AI.
reply> then they have to deal with their index funds, ETFs, mutual funds, pensions, 401ks, etc buying up overpriced stocks
replyOnly about a third of American stocks are held by passive capital [1]. Out of that, index funds are about 16%, and most of those in America reference the S&P 500, which has not yet announced whether it is changing its rules.
Sure, but it's the Americans that can least afford to be stood up as exit liquidity that have the most exposure here relative to their net worth. The ultra wealthy are going to be heavily overrepresented in the active basket. Meanwhile the folks lower down on the income scale are more likely to have their money in passive funds.
reply> The ultra wealthy are going to be heavily overrepresented in the active basket.
replyDo you have evidence to substantiate this claim? My brief research has shown the wealthier the investor, the likelier they are to use a passive strategy.
A third is a lot
16% is a lot
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