NEW YORK: The S&P 400 Mid-Cap index has surged to its best start to a year since 1991, both rewarding fund managers and forcing them to work harder to seek out bargains in a group that is now the most expensive part of the US market based on their historical averages.
The rally in mid-cap stocks - companies with a market valuation between US$2bil and US$10bil - has come during a broad rally in global stock markets as investors price in a resolution in the trade talks between the United States and China and fewer interest rate hikes by the Federal Reserve.