Small-company stocks are notoriously volatile. And these days, large-company stocks seem expensive. So for Goldilocks-style investors, medium-size companies can seem just right.
After all, the firms in the middle range of the stock market have survived the risky small-company stage "and still have a long runway for future growth. They are in a sweet spot," says Stephen Grant, manager of the Value Line Mid Cap Focused Fund, which has notched a 10-year average annual return of 12.8%, edging the 12.0% return of the large-company S&P 500 index over the same period.
