2024-01-31 23:59:14 ET
Summary
- The valuation gap between large caps and mid-caps widened in January as large-caps stocks outperformed mid-sized equities.
- I see the SPDR S&P Mid-Cap ETF as a relative value compared to large caps, while the ETF's absolute valuation is likewise attractive.
- MDY is priced right with a diverse sector allocation.
- On the chart, I highlight key price levels to watch as Q1 unfolds.
The valuation gap between large caps and mid-caps closed a bit over the final nine weeks of 2023, but a strong January showing from the biggest of the big stocks and generally soft returns from mid-size equities caused that gap to widen once more. Heading into February, and the bulk of mid-cap earnings season, there is a nearly five-turn valuation difference between the S&P 500 and the S&P 400. ...
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For further details see:
MDY: 5 Turns Cheaper Than The SPX, Mid-Caps Eye New Highs