Discover update
In one of my previous posts detailing the risk factors in the Discover spin-off I mentioned how Discover was not part of the S&P 500, which could lead to a large sell-off on the spin-off date. The reason I’m writing this post is because I saw this morning a news item discussing some changes to the S&P 500, and low and behold Discover was added to the index. The article is here.
This is pretty major news, the first reason is this should stem a large institutional sell-off from the S&P 500 funds. The second reason is this might give Discover some credibility in the marketplace with other large mutual funds that could possibly buy into it.