In a commentary for Barron’s, Cascade Institute fellow Christopher Collins argues that Elon Musk’s recently listed SpaceX is being granted accelerated entry into several major stock indexes.
Because index funds must hold what the indexes hold, passive money will have no choice but to buy the stock at peak hype — leaving ordinary investors, whose retirement savings sit in those funds, exposed to a decision they had no part in making.
Collins is a fellow with the Polycrisis Program at the Cascade Institute, and writes regularly on financial markets and systemic risk for Barron’s, The Globe and Mail, and other publications.
