FTSE old economy stocks likely to underperform

Old economy stocks promoted into the FTSE 100 Index are likely to underperform while the FTSE Mid 250 will move ahead, bolstered by the additions of the fallen tech stocks, according to Darren Brooks a quantitative strategist at Schroder Salomon Smith Barney (SSSB). SSSB has analysed the performance of all stocks that have advanced into the FTSE 100 since 1983. The group's findings show that the average stock had outperformed in the six-, three- and one-month periods before being upgraded. Following an elevation, however, most stocks underperformed in the next one-, three- and six-month pe...