“Sometimes when you’re investing in mid-cap value, you could be investing in fallen angels,” Hooper says.
With mid caps up so much this year, it's fair to ask if putting money into this group at this point is a case of performance chasing. Not necessarily, Hooper says, especially since the Federal Reserve has abruptly changed its monetary policy to pause tightening interest rates.
“You certainly want to be mindful of valuation, and that’s where a mid-cap blend makes sense since you’ll get exposure to some growth and value names,” she says.