Ask HN: How to make the best of the Mega IPO/ Index fund debacle?

3 pointsjppope4d ago3 comments

SpaceX just kicked off IPO season and it looks like this will have some far reaching effects due to the way index funds have changed their rules to allow immediate inclusion of IPOS: https://youtu.be/iOyFja87uyw?si=F6NpJUXgk0oBZ_bp

Trying to understand the best way to handle the situation both from a passive investor and what this means for startups and entrepreneurship as a whole. Its likely there will be some fallout but maybe the public will invest in the brands and not the company fundamentals? What opportunities do you see?

3 comments

akerl_4d ago

Best approach here is to do nothing differently than any other day. Invest your money in index funds, don't move it around, wait.

jppopeOP4d ago

Can you substantiate why that would work in this case? From a fundamental perspective it looks like the AI companies (and Spacex) are looking to take advantage of the fact that no one is paying attention to increase the price of the stock during the IPO. Its likely that the public will pay higher prices without knowing because the price won't have stabilized.

bdangubic4d ago

never buy index funds. this is what wealthy will tell you but none of them own index funds. how many of sp500 companies are doing great these days, growing, profitable…? 5% maybe. my financial well-being has dramatically changed since I stopped buying index funds 9 years ago. bunch of “smart” people will tell you “oh this is risky, bla bla” and it sure might be but while you might end up “rich” with index funds you won’t get wealthy. I will never again spend a penny in index funds (I am self-employed and manage my own i401k)

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3 comments

akerl_4d ago

Best approach here is to do nothing differently than any other day. Invest your money in index funds, don't move it around, wait.

jppopeOP4d ago

bdangubic4d ago

j / k navigate · click thread line to collapse