Over the long run, mid cap stocks should weather an economic downturn better as well. In a steep market decline, mid cap stocks typically experience a greater drop than large cap stocks as fear drives investors to the perceived safety of size. It is always a challenge for investors to steer away from what has already worked and toward what is most likely to work in the future. This tendency is reflected in the valuation disparity between large and medium and small companies. Prudence suggests that investors should take steps to diversify their portfolios so that they have balanced exposure to the broad market and are not overly concentrated in a narrow group of highly valued companies.
Past performance is no guarantee of future results.
Given the inherent volatility of the securities markets, it should not be assumed that future investors will experience returns, if any, comparable to those discussed herein. All material presented is compiled form sources deemed to be reliable, but accuracy and completeness cannot be guaranteed. The data presented is taken from publicly available information and calculations are based on advisor s best efforts to present factual information. The Russell Mid Cap Index measures the performance of the 800 smallest companies in the Russell 1000 Index.