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0 pointsrobertjpayne19d ago0 comments

They're going to force a S&P500 index listing on IPO day so we're all going to be forced to baghold this regardless of if we want to or not unless you've got $0 in any major retirement fund.

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btown19d ago

The question is, is everyone integrating a special SpaceX correction in their algorithmic trading? Because if a dip in the index due to SpaceX causes old algorithms to think it’s a more structural issue (well, more than it is), and sell on that indicator, will that cause a cascade?

drivebyhooting19d ago

Oh yes, thanks for reminding me. I’m going to cash out the 401(k).

ambicapter19d ago

You’ll pay massive penalties on that, another option is options (heh) but I’m not finance-literate enough to know how to pull it off.

aaronblohowiak19d ago

Only penalties if you withdraw from 401k. Most 401k plans have some kind of moneymarket, bond fund, or similar

abtinf19d ago

You can just reallocate away from an index fund.

kvuj19d ago

You could just buy deep out of money SP500 puts expiring in 1+ year. That way you would be "insured" against the bubble popping.

The thing is, every dollar you spend on insurance is a dollar (and its interest) you lose. Furthermore, we don't know when it will pop. 1 year? 5 years?

The more reasonable solution is probably gradually reduce exposure to US markets by selling SP500 shares and turning to Europe and emerging markets ETFs. No need to cash out 401k.

glitchc19d ago

My money's all in Bitcoin pats himself on the back

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