Many investors are pouring their money into shares of big name corporations these days, but that ignores a simple fact: More money can be made from investing in small and mid-sized companies, experts say.
Germany is a good example of the wider trend. The country’s mid-cap MDAX index, listing companies such as engine maker MTU and machinery manufacturer Krones, has outstripped the blue-chip DAX for some time, according to analysts at DZ Bank. The mid-cap index has gained 11.3 percent per year on average since December 30, 1987, the base date they used for the indices, compared with average annual growth of just 8.8 percent for the DAX.
That’s unlikely to change in 2017: The election of Donald Trump in the United States could even prove an additional stimulus package for smaller firms able to dodge the global economic upheaval he might bring with him.