As a set of stocks, mid-caps have done poorly in the last year. Some of this was, of course, due to business conditions. Others did poorly because of valuation readjustments. Some stocks were seeing readjustment for quite some time, and the bears just made sure it continued for longer. So, is the valuation adjustment over? When investing in mid-caps, investors need to be clear about three things. One is valuation. Two is the real business of the company. And three is the management. You can err on valuations, but not the other two. They are the key to investing, especially in the mid-cap space.
