00:00Primberg's tech equity reporter Isabelle Lee is one of the team on today's big take all about how already SpaceX
00:06is just so large so consequential that benchmarks having to tear up the rule books as to how they let
00:12them start trading. I couldn't have put it better tearing up the rule book or revising if you want to
00:16be more diplomatic. So the companies behind the most familiar names you can think of like Nasdaq 100 and FTSE
00:21Russell they've already changed the rule book from Nasdaq the seasoning period or the call it the waiting period when
00:27the company debuts they go public
00:29they have to sit there for a while before three months before they'll consider you to be part of the
00:34Nasdaq 100 they've narrowed that down to 15 days for the FTSE it's five days the S&P is in
00:40consultation from 12 months to six months so of course you have proponents saying yes this is what we want
00:45because it will reflect the market but you have critics saying but wait when companies go public they're usually volatile
00:51and don't you want to wait and see first you know have a normal price discovery so of course just
00:55like with anything there's critics and there are also supporters.
00:58And the critics are worried perhaps about protections for retail investors or new entrants meanwhile SpaceX is all about the
01:04retail investor I mean 30% allocation towards them how are we seeing this managing to go into sometimes Elon
01:11Musk's criticism himself of passive investments.
01:14Exactly so index tracking funds are estimated to buy nearly $20 billion worth of SpaceX that's massive I don't think
01:20we've seen that before and going with retail traders I went on Reddit which is the most reliable source on
01:25earth that's obviously a joke I'm smiling if people are just listening and some people were like why will we
01:31even buy this if it will be in our brokerage in the index funds in just a few months.
01:36So there is that thinking of like how will this reshape passive investing will traditional money managers have to reallocate
01:42because they don't want to be too overweight on one thing.
01:45I mean where is SpaceX going to be categorized under even industrials tech or communication so lots of unknown but
01:50definitely consequential.
01:56Isabel tough decisions need to be made.
01:58We spent a lot last week talking about Tesla and the idea that SpaceX merges with Tesla in the future
02:05you just showed a quote from Scott Solzhenit one one point he makes is that actually Tesla and Bitcoin is
02:11examples you and I talked about the Bitcoin holdings at SpaceX last week they might actually get hit by this
02:16why.
02:18Because a play on Tesla and a play on SpaceX is really just a belief on Elon and if you're
02:24invested in Tesla and SpaceX are you to over concentrate on an Elon now I know that these are two
02:29separate companies and within those two companies are multiple companies it feels like and they have different valuations different technicals
02:36but it's all really Elon at the end of the day.
02:38So that's what one analyst was telling me also like if you're into Tesla would you sell that because you're
02:43going to be in SpaceX and SpaceX of course is also in the index so really lots of over concentrated
02:47risk and it's not just Tesla I mean soon we'll see open AI we'll see Anthropic which the show has
02:53covered a lot what's that going to mean for our for your brokerage as an ordinary American I mean you're
02:58going to have such a huge concentration of tech and do you want that for your portfolio.
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