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So you think is fair changing the rules in the last minutes (so to speak)?
Investor summaryBearish
Author criticizes Nasdaq for altering index rules to force passive funds into buying an overvalued stock with weak fundamentals.
Bear points
- Index inclusion forces passive 401k funds to buy the stock regardless of its valuation.
- The stock's price is unjustified by current fundamentals and relies on overly optimistic long-term expectations.
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Post body
Yeah, simply that. Nasdaq changed the rules to be included in the index waaaaaay faster (as many of you may already know) so now 401Ks will have to - indirectly - buy certain stock even though the entire fundamentals are not good to justify that price and the price is based on too optimistic expectations in the future (loooooooong term). Isn't that playing with people's money just because you have the power or the influence to change the rules of the game?
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