M&A activity continues to boost mid-cap performance

While not wishing to dwell too much on the past, it is worth noting that in 2006 the FTSE 250 rose by a remarkable 27.1% against 10.7% for the FTSE 100. This represented the fourth consecutive year of mid-cap outperformance and since the nadir in March 2003, mid-caps have risen by 194% while the FTSE 100 is up only 90%. Looking to the future, a strong market rally in December may well have increased the likelihood of a New Year hangover but we continue to be optimistic on mid-caps for 2007. After four years of the strongest growth since the early-1970s, the global economy is entering a tr...