Mid-Cap Funds Peaking?

According to Standard & Poor's, the S&P MidCap 400 index has outperformed the S&P 500 (large-cap) and the SmallCap 600 indexes this year (through October), gaining 5.6%, compared to 1.1% and 3.1%, respectively. However, Richard Diennor, reflecting on "Insight from Standard & Poors," predicts that "the winning streak [for mid-cap stocks and mutual funds that invest in them] may soon come to an end," in this Fund Investor column from BusinessWeek Online. Diennor reports that "...a number of market watchers think investors will begin moving into big companies some time next year if interest rates and inflation rise and the U.S. economy slows. In that kind of environment, investors will prefer the stability and maturity that large businesses can offer, they say." For details, see the complete article.

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(May '04-Jun '05)