Mid-cap stocks are often called the “sweet spot” in the market-capitalization spectrum for equity investing. History agrees. Mid-cap performance has delivered a solid premium over large-caps and small-caps over the last two decades. This is a bit of conundrum for financial economics. The academy’s models, after all, insist that small caps are destined for stellar performance over the rest of the field. But the track record over the last 20 years has thrown out the script and awarded the gold to mid-caps.
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