Readers weigh in on World Cup betting, markets fearing tighter money, SpaceX IPO’s effect on index funds, buying SpaceX at the IPO price, and Apple CEO Tim Cook’s track record.
To the Editor:
There are vivid accounts of Romans betting on gladiatorial combat, including Emperor Augustus losing 30 times a soldier’s annual salary (“The World Cup Is Sports Betting’s Biggest Moment—and Maybe Its Last Hurrah,” Cover Story, June 5). Two thousand years later, it’s good to hear that someone’s finally putting the brakes on this.
Kenneth Chick
On Barrons.com
A Great System
To the Editor:
Randall W. Forsyth says that markets fear tighter money (“The Tech Rally Goes in Reverse as Markets Anticipate Tighter Money,” Up & Down Wall Street, June 5). In a fiat money economy, the mere fact of making a loan creates the money needed. The only limit is fear of nonrepayment, and that’s compensated by the interest rate. It’s a great system. What was it that Milton Friedman said? “Inflation is always and everywhere a monetary phenomenon.” Tighter money, here we come.
Dr. Claude Burdick
Livermore, Calif.
Fast-Track Sellers
To the Editor:
In “What Will SpaceX’s IPO Mean for Your Index Funds?” (June 5) Lewis Braham suggested that the small public float of the stock will limit a large portion of stock being added to a mutual fund. Plus, some index funds such as the S&P 500 will not fast-track it until it has four quarters of profitability. Well, Cerebras Systems was fast-tracked by the S&P Total Market Index and the stock still closed down around 40% from its first-day IPO peak in about two weeks. Not enough index buying to offset the fast-track sellers whose shares weren’t locked up.
Joseph l. Rosenberg
Florham Park, N.J.
To the Moon
To the Editor:
I’m going to try to buy SpaceX at the initial-public-offering price (“Elon Musk’s $1.8 Trillion SpaceX IPO Is Too Big to Succeed,” June 5). I always wanted to own a rocket company, and with Musk navigating the spaceship, I feel confident that he will take my finances to the moon.
Martin Blumberg
Melville N.Y.
Hero Worship
To the Editor:
My curiosity was aroused when I read that Apple CEO Tim Cook’s 15-year tenure was a wild success, with revenue up some 300% (“Apple’s AI Do-Over Is Here. The Pressure Is On for WWDC,” Tech Trader, June 5). I did some research and discovered that in the past 15 years, the Dow has increased about 362% while the S&P 500 index has increased 470% excluding dividends and 600% with dividends. Adoration of leaders can be dangerous and should not be a part of rational analysis.
Jovan L. Govedarica
Park Ridge, Ill.
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