Humiliation for US Congressman who bought stocks after 6 years... How much did he lose by buying SpaceX at its peak?

▲ SpaceX (SPCX), US stocks, stock price drop / AI generated image ©

U.S. congressional members quickly jumped into investing in recently listed SpaceX (SPCX) shares, but due to ill-timed purchases, they incurred significant unrealized losses within just a few weeks. As Elon Musk's space company, which entered the New York stock market after garnering attention for its historically large IPO, retreated significantly from its peak, the tragic history of political investment appears to be repeating itself once again.

According to crypto media outlet Finbold on July 6 (local time), a prominent case revealed through House disclosure reports is the market activity of U.S. Federal Representative Dan Meuser. Representative Meuser purchased SpaceX shares on June 16, within a range of $5,000 to $50,000. However, according to official filings disclosed on July 2, the day he bought was ironically the same day SpaceX recorded its all-time high of $225.64, and the stock price experienced a significant correction immediately thereafter. Currently, in extended trading, SpaceX stock is trading at $163.58, a slight rebound of 0.98% from its previous closing price.

If Representative Meuser had entered at the peak on June 16, it is estimated that his asset value would have plummeted by 27.5% to $36,248, incurring a loss of up to $13,752. Even if his purchase timing had coincided with the day's low of $199.98, the situation would not be significantly different. Based on the maximum investment amount of $50,000, his position value would have shrunk by 18.2% to $40,899.09, resulting in an unrealized loss of approximately $9,100.91.

However, experts predict that such losses for U.S. political figures will not continue throughout July. This is because SpaceX is set to experience strong upward momentum as it will be officially included in the Nasdaq 100 index starting July 7. While the promotional effect of index inclusion might be minimal given Elon Musk's latest listed company already has peak global recognition, the likelihood of a massive influx of institutional buying is very high as passive index funds will be compelled to include SpaceX shares in their portfolios.

It is highly probable that Representative Meuser was also aware of this bullish outlook beforehand. Excluding bond purchases, his stock purchase was an unusual decision, marking his first stock acquisition in approximately six years since March 30, 2020. Although he is currently experiencing negative returns due to buying at the listing's peak, the media analyzed that there is a high probability his asset value will turn positive again in July once the positive news of index inclusion and institutional liquidity supply materialize.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*