There is enough evidence to show that while mid-cap stocks might come under pressure in the short term, they deliver much higher returns over the long term. Especially if they are from sectors with some tailwinds. At this point, it is important to see whether a sector is growing at a faster pace than others – and whether the nature of the business is such that it is likely to continue growing at a higher rate. Premiums can only be justified if there is a reasonable probability of higher growth in the future as well.
