While you certainly know the classic tale from which it gets its moniker, you've probably also heard of the Goldilocks principle - the concept used to describe when things are 'just right'. This can also be known as the 'sweet spot' and, when it comes to investing in global equities, it just may be the small and mid-caps universe.
While recent times have been dominated by the big end of town, namely technology giants, historical data shows that over the long-term it's the smaller players that have outperformed, including on a risk-adjusted basis.
And, while diversification is a key benefit, small and mid-caps also offer more potential for generating alpha; as fewer investors can research them, and the opportunity for mispricing grows.
With more volatility predicted ahead, Fidelity's selection of 'recession resilient' global small and mid-cap companies are well worth considering for your clients' global equities exposure.
Find out more in the article.