Is it okay to space out on SpaceX?
The mega IPO no one will shut up about
Not investment, tax, or legal advice. Not a recommendation to buy or sell any security. Hire an adviser for personalized guidance.
The die is cast on SpaceX:
If you have some shares from employment, you’ll get liquid at some point. You generally can’t hedge as an employee (options should be announced shortly), but investors have other tools to derisk, like exchange funds, tax-aware long/short, gifting, selling outright, staged selling, etc.
Investors trying to get an allocation… bleh. Maybe just read Antti’s paper to make sure that’s the best strategy (TL;DR: recent winners tend to underperform). I have no idea what will happen.
Investors getting exposure via an index fund, you might be forced to reckon with the idea that any particular index fund is an ironically active bet. The quicker an index adds SpaceX, the quicker investors get exposure, whether it makes fundamental sense or not. I’m very curious what the systematic active folks (Dimensional, AQR, Canvas, etc.) do with SpaceX, if anything, since they’re not benchmark bound.
Things that have nothing to do with SpaceX:
Dimensional (2020): Borrowing Fees and Expected Stock Returns
Andrew Ang (2026): Uncle Sam’s Cut: A Century of the Federal Tax Drag on US Equity Returns
Knight/Knight (2016): Accounting for Notional Principal Contracts
Who needs an estate planner when you have…
Alright, some SpaceX…
TGIF