If you were invested in the stock market in 2019, there's a good chance you're smiling from ear to ear. The benchmark S&P 500, which has historically returned 7% per year, inclusive of dividend reinvestment and when adjusting for inflation, gained a whopping 29% in 2019.
The big question is: Can 2020 fill the big shoes that 2019 left behind?
For investors, this becomes decision time as to where to park their money. Are generally safer larger-cap stocks a way to minimize risk, or does the high-growth potential of small-caps in a low-interest rate environment strike a chord with investors? I say, why not compromise? Mid-cap stocks (i.e., those with market caps of between $2 billion and $10 billion) usually offer faster growth rates than more mature large-cap businesses, but typically have more time-tested business models than small-cap businesses. Call it the best of both worlds.