For context: MSCI dilution concerns because of SPCX. Is there anything to them?

There are already confirmed reports that SpaceX could be fast-tracked into MSCI indices. MSCI even changed some of its rules for this, apparently to bow down to the grand master of stock market manipulation. 😉

But would this actually dilute the MSCI World Index? Let's take a look.

The iShares Core MSCI World currently represents a market capitalization of roughly $90 trillion.

Musk has only indicated that around 5% of SpaceX would be made available to public investors. With an estimated SpaceX valuation of up to $2 trillion, that would amount to roughly $100 billion in publicly traded shares.

In relative terms, that's actually not sooo much. Yes, the company would immediately rank among the top 20 constituents. But we're still talking about only around 0.1% of the index.

Evenif the stock were to drop 30% immediately after the IPO, that would only translate into about 0.03% of the index. My Eutelsat holdings create far bigger swings than that. 😉

So no, I'm not selling my ETF because of this.

That's enough Saturday analysis.

Treat yourselves to something nice!

Over here, it's 6:00 pm and we're getting ready for new potatoes with freshly picked herbs from the garden, served alongside spare ribs. Enjoy your meal over there!

https://preview.redd.it/3z3nzhj4ta4h1.png?width=640&format=png&auto=webp&s=1d65c648232d0287247a4b632147433cd7d1e6eb