The FTSE 250 is in one of those rare times when it’s fallen behind the FTSE 100. But I wonder if we could be on the verge of a new surge.
After soaring in the Covid crisis, mid-cap shares have fallen out of favour. And over the past five years, the index has gained just 4%. That compares to 11% for its bigger London sibling, and goes against the long-term trend.
Over the decades, the FTSE 100 has made average total returns of around 7% per year, while the FTSE 250 has been closer to 11%.
It does look like UK investors have been averse to risk. But I think that’s changing, and I reckon the FTSE 250 might be hiding some explosive growth potential.
Telecoms growth
Telecom Plus (LSE: TEP) shares lost a couple of percent on results day on 18 June. And they’re way down from the highs they reached in 2022.
But the stock is still up 24% in the past five years. And I wonder if a new bull run might be on the…
