Dr. Pete Meyers

@dr-pete.bsky.social

2774 Followers 351 Following

Mostly not a real doctor. Principal Innovation Architect at Moz. On a quest to figure out what exactly a Principal Innovation Architect does.

Headline: SpaceX Stock Flirts with New Lows

Welcome to Taqueria Invicto Loyalty

While I understand the incentive to have the S&P accurately reflect the market, "MegaCap" companies also have outsized influence and risk. For example, the SpaceX IPO is coming on the heels of a merger with xAI (and X/Twitter) that could dramatically impact risk to investors. A 6-month window may not include a full annual report and might mask serious problems. Pairing this with a drop in the IWF and removal of Financial Viability requirements multiplies that risk. I'm also specifically concerned that, as proposed, the IWF is dropping from 0.10 to 0.0, with no apparent rationale (vs. lowering the ratio to, say, 0.05). The consultation is very light on rationale for moving three major levers all at once, and the timeline is rushed for no clear reason. The S&P indices impact multiple funds held by millions of everyday investors (including in their IRAs and 401Ks), and fast-tracking MegaCaps involuntarily subjects all of us to additional risk.