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Given this backdrop and a low-interest-rate environment, we think it could be wise to bet on mid-cap stocks. That’s because mid-cap companies tend to outperform the broader markets and industry giants during periods of economic boom, owing to higher consumer spending and bullish market sentiment. A low-interest-rate environment also increases these companies’ access to capital.
However, with surging market volatility, rising COVID-19 cases and geopolitical tensions, analysts predict big price swings in the coming period. Thus, we think relatively stable mid-cap stocks AutoNation, Inc. (AN), OneMain Holdings, Inc. (NYSE:OMF), Penske Automotive Group, Inc. (NYSE:PAG), and Piper Sandler Companies (PIPR), which each has an A (Strong Buy) rating in our proprietary POWR Ratings system, could be ideal bets now.
