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S&P 500 drops Macy’s: Zachary Horn, MBA, CFP®, CMFC Quoted in the Cincinnati Business Courier

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Zach Horn spoke with Andy Brownfield of the Cincinnati Business Courier about the S&P dropping Macy’s.

Here is an excerpt from the story published on April 1:

Stocks are routinely delisted from the S&P 500 at a rate of about 5% a year, or 20 companies, according to Zach Horn, managing partner at Foster & Motley. But usually that happens due to mergers and acquisitions, or because a smaller company has grown rapidly in market capitalization. It doesn't happen as often that a company's market cap shrinks as rapidly as Macy's, causing it to fall off.

Horn said being removed from the S&P 500 is not necessarily a death knell for Macy's – some stocks have gone on to stagnate after being delisted, but others were devalued and had room to run in the long-term.

"This is the less desirable way to be removed, though and the market is responding with a pullback from Macy’s stock today," he said.

Click here to see what Zach has to say (a subscription may be required).