If you have money in the SP500, you own Tesla stock
If you have money in the SP500, you own Tesla stock
Title. It occurred to me that despite not wanting to support musk or some other American businesses because of their recent change in policies, I'm still holding a stake in those companies.
I'm fine with that, if Tesla keeps sinking the S&P will have to drop it from the index.
Yes, that is how index funds work. Tesla is apart of the index so you indirectly own shares in every S&P500.
You also have indirect shares in a host of other dodgy companies like Google, Meta, Amazon, Coco Cola, McDonalds, Pepsi, Disney
If it makes you feel better, you probably also hold a stake in their direct competition.
Didn't know that you could own stock in antifa and Luigi Mangione
A lot of their direct competition is not in the S&P 500 because they are not American companies. Hyundai, Volkswagen, Toyota, Nissan, BYD, etc. American automakers let the EV market languish so long that they are only now becoming legitimate competitors in that space
To clarify, that’s if you own SPY or SPX
You can buy a share or two of TSLQ to hedge against TSLA while still holding your index funds
Most people have money in the SP500 through their 401(k), sadly.
For now....
one of the reasons isn't tanking faster, comes bundled up in many institutional accounts, retirement accounts, etc
In other words, is an integral part of our society that we’ve all collectively invested a lot of money into, for a lot of benefit.
Almost as if the cars have value beyond a status symbol or signal of political allegiance.
So you're saying a price-to-earnings ratio of ~90x over the last five years is a reasonable valuation.. when their competitors are historically closer to... 6x?
an integral part of our society
It's an overvalued meme stonk pushed by Tim Urban's 2015 Musk propaganda pieces and WSB, supercharged by Twitter Muskapades during the very strange COVID-induced market wildfires.
The price is fueled by retail gambling, with the cult of personality and [false] idealism of the company lending it stamina that finally seems to be ailing.
Tesla's stratospheric P/E ratio is ridiculous.
Sometimes you have to play the game even if you don't like it.
Shorts over the last month would have been profitable
I dont think I have to but its surely to my benefit. Classic case of greed vs values
If you'd like to hold a large cap blend that doesn't include Tesla, you might like VTV (Vanguard Large Cap Value ETF). I didn't see Tesla listed in it and I really doubt it's any of the 339 companies it holds.
Edit: I just traded all my retirement shares of VTI for VTV. Fuck Tesla. And Facebook. And Amazon.
And also in the oil giants, which are far worse for the world than Tesla.
If this bothers you, you can short an amount equivalent to your index fund’s holding. But you’d have to track and maintain parity against the proportional allocation of the index fund as Tesla’s market cap changed and you invested more into the index.
I’m not sure that works. I was under the impression that shorts were fixed-term contracts and the index funds holdings are longs.
You can’t “borrow” somebody’s long and sell it and then just… not return it. You are also (IIRC) paying a premium to be able to borrow the stock to sell.
For now anyhow...
American is kind of a central point for the market. Sure there are plenty of non American exchanges but if you want to do business with the "big boys" it is in New York.
One of the reasons I prefer something like the Russell 2000