RSP's & Wealth simple

[GreyGhost]

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More on the SpaceX IPO.

SpaceX finally files for IPO, targets $1.75 trillion valuation

Confidential SEC submission sets up largest IPO in history. See full article...

arstechnica.com

I'm comfortable with wanting nothing to do with this.

There are more than a few people that are clearly in your camp.

"Sure, in some theoretical sense they have a larger total addressable market, but I don't think their sales rate in any way justifies the price. If they get added to the S&P500 I might just have to move out of my index funds because between AI and this I'd end up massively overweight on speculative nonsense."

I am with you. I do not directly own anything musk associated. Too volatile based on nonsense. Money I am putting in this year is ex-US. I have enough US exposure, spreading more makes a lot of sense.

 

[WestBrantKid]

ETF's can be many things. The ETF's most people think of track indexes (for instance VOO or QQQ) so as you say, they can be automated almost entirely. The index provides the formula, each day as people buy or sell, the fund needs to buy/sell underlying stocks in the provided proportions. That's it. No decisions, just formulas (provided by others).

At the other end, something like HDIV is an ETF where the managers pick the underlying holdings (in that case, more than 10 other ETF's), borrow money to increase returns (in either direction) and sell covered calls to increase payouts at the expense of loss of some upside potential. The computer deals with day to day mechanics but someone is making decisions on the path to follow and weightings.

Be careful with actively managed funds. Some are trying to improve your returns. Many are like fishing lures or fancy helmets and their primary purpose is attracting buyers. The more money the fund collects, the richer its proponents get.

Thanks for the clarification. For the record, I did stat that I'm a "financial idiot". lol
I was under the impression they were all managed, although for some, like gold, silver and copper ETFs, I did wonder what there was to manage. Again, I assumed they had managers choosing mining companies and related corporations to invest in.

 

[JC99]

More on the SpaceX IPO.

SpaceX finally files for IPO, targets $1.75 trillion valuation

Confidential SEC submission sets up largest IPO in history. See full article...

arstechnica.com

I'm comfortable with wanting nothing to do with this.

I think the Elon factor has attributed to that valuation. I can’t see the value to this extent in this company. Other countries have their own launch systems that are sovereign systems in this weird political climate. Ariane rockets are still launching (launched a bunch of Amazon satellites this year) for Europe and the Chinese have their own systems.

I couldn’t invest in any Elon company on its own either as I think he’s a bit of a twat and a pretty vile human being but recognize that the S&P 500 gives me exposure to the knob and his bald evil counterpart Bezos.

 

[mimico_polak]

Today's discussion:

Me: Hey, your signing officer added 2 digits to my account number...why is that?
QT: Oh that's standard. Any financial institution should be OK with that.
Me: Well no. They've rejected the transfer because now the account numbers don't match.
QT: We typically add 08 or 10 to the end.
Me: You added '12' to it.
QT: Should be fine.
Me: It's not. I need to update the account number.
QT: I'll initiate a new signature.
Me: How long will that take?
QT: 1-2 weeks
Me: Make it this week. I'll change my table and see if they accept me erasing the '12' but I want an updated signed document by end of week.

Effing hell...

 

[GreyGhost]

Thanks for the clarification. For the record, I did stat that I'm a "financial idiot". lol
I was under the impression they were all managed, although for some, like gold, silver and copper ETFs, I did wonder what there was to manage. Again, I assumed they had managers choosing mining companies and related corporations to invest in.

For simplicity, wherever I say gold in this post assume you can substitute other precious metals by using different tickers. Some gold etf's (like cgl) just track the price of physical gold. More liquid and easier to store than physical gold. Some gold etf's generate income from gold (eg AMAX) by selling covered calls. Some gold etf's track the miners (eg XGD).

Make sure to pick a fund that matches your expectations as they all have plusses and minuses. Some funds directly track physical gold and move in lock step and others like MNT.TO sell you units of the fund and the price can swing based on buyers/sellers of the fund in addition to gold price changes. The covered call funds generate some cashflow but lose out on some upside if gold rises. Miners generally move with gold price but can have wild swings up or down based on discoveries, government decisions, etc.

 

[raginduck]

Ive been building a self directed portfolio..
I have a couple ETFs and a few individual stocks. The stocks are ones that I intend to hold longer term.. but I will play with the swings on occasion.. enb yesterday to today added a few pennies to the jar.

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