VO: Turning Bullish US Mid-Caps - Better Valuations, Bullish Seasonals

Summary

  • Stocks outside the US megacap Magnificent Seven have negative alpha this year.
  • US mid-caps have historically provided the best long-term returns.
  • The Vanguard Mid-Cap Index Fund ETF Shares is undervalued and has bullish seasonal trends, making it a good investment option.
  • I outline key price levels to watch amid weak momentum on VO.

Stockmarket and investment theme background with City skyscraper

Nikada

Nearly all stocks outside of the US megacap Magnificent Seven have produced negative alpha this year. Stretch out the performance scope to five years, and you'll also see heavy underperformance among value stocks, foreign equities, and domestic SMID caps.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of VO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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