Mid Cap Relative Valuations At Historically High Levels

Since January 1, 2000 small cap and mid cap stocks have significantly outperformed large cap U.S. equities.

From The Blog of HORAN Capital Advisors

From a valuation perspective, since the beginning of 1992, mid cap equities are trading at historically high valuations compared to large cap stocks on a relative basis. Absolute valuations of mid cap stocks still look reasonable; however, if there is a reversion to the mean, large cap equities are likely to gain the upper hand on performance as one looks forward. Maintaining some exposure to mid caps will likely be beneficial though as merger activity often times targets the mid cap companies.

From The Blog of HORAN Capital Advisors

Source: T. Rowe Price (PDF)