My take on S&P inclusion. Think about the financial impact that a company like Tesla is going to have on the market as a whole on inclusion day. In order to fit Tesla into the indexed funds, millions of shares amounting to up to $20B or more will be bought. But, all the other indexed Companies will lose by being sold to make room for Tesla. That on top of the current general market downturn could be somewhat damaging. Musk offering to sell (dilute shares) $5B more possible new shares offers a bone to the S&P group, minimizing damaging. Also, the public freak out of Tesla being skipped, brings down share price a bit. Which will come right back up when they are included, means that the impact of including Tesla is reduced. Hence no complaint from Musk.
So, calm down. Sell if you must, but hold firm for the mid to long term. Even short term is not as bad as you think. The only ones suffering now are those that do day trading. Rest of us are just fine.
Disclaimer: The comments, opinions and analysis expressed herein are for informational and educational purposes only and shoulk not be considered as individual investment advice or recommendations. Webull is not responsible or liable in any way for comments posted by pur users.
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