why? the cards are on the table. If you buy a turd from me after I disclose the composition, that is on you

newshackr 2 hours ago | parent | next [-]

You can't sell these ETFs without incurring capital gains, potentially large. So it isn't really a choice.

bobsomers an hour ago | parent | next [-]

If it's actually your 401k, sure you can. Just today I rebalanced my retirement funds away from large cap stocks to avoid this steaming turd that Elon is dumping on the public.

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andsoitis an hour ago | parent [-]

> Just today I rebalanced my retirement funds away from large cap stocks

Away from large cap stocks to what?

	▲	AlexCoventry an hour ago \| parent \| next [-]
		For what it's worth, I think anything selling energy or fertilizer which is not sourced from the Middle East is a pretty good bet right now. Depends on how the US/Iran conflict plays out, of course, but I'm not optimistic.
	▲	edoceo an hour ago \| parent \| prev [-]
		Small-cap, mid-cap and ex-US real estate? That's been floated in my circles - that and the 30 year.

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cdash 7 minutes ago | parent | prev [-]

How is that their problem? That is an issue between you and the government.

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d--b 27 minutes ago | parent | prev [-]

Sure, the problem is trust.

Regular people want to invest so they can make money and companies want people to invest so that they can raise money. So pretty much everybody wants the 401k money to be invested in the stock market.

But the issue is that investing in the stock market is very technical, so some smart asses invented the index funds to make it easy for daddy and mummy to put their retirement accounts to work.

The index has safeguards in place to try and reduce its volatilty. So people are happy, cause they are investing in stock without having to look closely at what it is they bought.

But if suddenly some people change the safeguard rule, so that their buddy can dump their overvalued stock over people who think they are investing relatively safely, then it can be argued that there is foul play.

People are not finance specialists and they are heavily incentivized to buy index funds, so they need to trust that the people who are telling them to invest are not hiding things from them. If that trust is broken, lawsuits will follow.

It’s like: imagine you own a Toyota and have a maintenance contract with Toyota, and one day you have your car serviced and they tell you they changed the brakes. They tell you the brand of the new brakes and they tell you it’s fine while in fact, they put some cheap garbage that fail after 100 km of driving.

When the brakes fail and your car falls off a cliff, you go and see them and they tell you: “yeah those brakes were bad, but we told you we put them in, you could have looked up that these were bad, it’s all over the internet, so that’s on you”.

	▲	lenerdenator 4 minutes ago \| parent [-]
		> People are not finance specialists and they are heavily incentivized to buy index funds, so they need to trust that the people who are telling them to invest are not hiding things from them. If that trust is broken, lawsuits will follow. A "lawsuit" isn't a concern for the likes of Musk. He's got the money to pay lawyers, politicians, and influencers. He's spread this risk around to the right people; if he goes down, they're going down with him, too. At a certain point you have to start jailing people for long periods of time. I don't mean the Milken, Belfort, or Skilling treatment. I mean being placed away for 30+ years in medium-security facilities at the least.