The stock markets have been experiencing immense volatility lately due to concerns over high inflation, the Federal Reserve’s aggressive interest rate increases, supply chain disruptions, and a potential recession. However, slower inflation in April caused many economists to speculate that inflation may not increase further. Also, strong consumer spending is expected to keep the overall economy moving forward.
However, because current investor concerns are expected to linger, we think it could be wise to invest in mid-cap stocks because they usually deliver better returns than large-cap stocks and are more stable than small-cap stocks. Investors’ interest in mid-cap stocks is evident in the SPDR Portfolio S&P 400 Mid Cap ETF’s (SPMD) 3.7% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 1.1% returns.
