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Index Fund Investing Has Been Flawless for 33 Years, but the SpaceX IPO Threatens to Break Everything

The Motley Fool·
Index Fund Investing Has Been Flawless for 33 Years, but the SpaceX IPO Threatens to Break Everything

SpaceX's anticipated June 12 IPO with a $1.8 trillion valuation is forcing index providers to waive profitability requirements and accelerate inclusion timelines, compelling $30+ trillion in passive retirement funds to buy shares at IPO valuations. Critics warn the company's massive losses, capital-intensive model, 96x sales valuation, and insider share dumping plans could drag down market-cap-weighted indexes and threaten three decades of stable index fund investing.

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