Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
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@MissConstrue Hmmm … so passive index funds will be forced to include the bloatstocks into their portfolios, right? But to make room for that, they will have to sell off much of their current portfolio. Which means downward pressure on all other stocks. Maybe time to buy some put options?
@ArtHarg I've heard a few analysts say something similar, but I don't have the courage to play the puts and shorts game. I'm more on the dividend aristocrat reinvesting for twenty years side of the board.
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@MissConstrue You could also start a petition drive asking the hedge funds to include an investment spread that avoids or only lightly invests in 'high risk' companies forcing premature/irrational market IPOs inclusion. Or hell, just call a spade a spade. Say "X Y Z are forcing high risk investment into medium & lower risk portfolio. We want an index option that specifically discludes companies X Y Z from the index. Get enough signatures on that, hedge fund managers will sit up & take notice
@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.
indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.
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