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Three mid cap picks for H2 by Richard Gill, CFA

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Small caps may be where the serious short-term dough can be made, but as ever in the financial markets, increased reward only comes with increased risk. However, traders who have a lower risk profile but are still looking for decent gains could do well in the second half of the year by looking at a number of London listed mid-cap shares – by mid-cap I mean those in the FTSE 250 index.

Interestingly, the FTSE 250 index itself has gained 184% since its nadir in November 2008. This compares to only a 94.2% rise in the supposedly “higher growth” AIM All Share. What’s more, some mid-caps have delivered gains that put many small caps to shame, including rises of over 1,000% from Howden Joinery, Taylor Wimpey and Rightmove over the past few years.

The market obviously looks more expensive now following the economic recovery. In fact the FTSE 250 currently trades on an earnings multiple of 18.25 times, compared to 13.96 for the FTSE 100 (Source: FTSE). However, not only do many of the mid-caps still offer decent growth prospects, as well as income, but I believe that there are a number of reasons on the macro-economic front why mid-caps in general could come good over the rest of the year….

TO READ THE ARTICLE IN FULL & SEE RICHARD’S 3 MID CAP PICKS FOR H2 DOWNLOAD THE AUGUST EDITION OF SPREADBET MAGAZINE (PAGE 36) BY CLICKING THE IMAGE BELOW

<p>Small caps may be where the serious short-term dough can be  made, but as ever in the financial markets, increased reward only comes with  increased risk. However, traders who have a lower risk profile but are still  looking for decent gains could do well in the second half of the year by  looking at a number of London listed mid-cap shares – by mid-cap I mean those  in the FTSE 250 index.<br />
  <br />
  Interestingly, the FTSE 250 index itself has gained 184%  since its nadir in November 2008. This compares to only a 94.2% rise in the  supposedly &ldquo;higher growth&rdquo; AIM All Share. What’s more, some mid-caps have  delivered gains that put many small caps to shame, including rises of over  1,000% from <strong>Howden Joinery, Taylor Wimpey</strong> and <strong>Rightmove</strong> over the  past few years. <br />
  <br />
The market obviously looks more expensive now following the  economic recovery. In fact the FTSE 250 currently trades on an earnings  multiple of 18.25 times, compared to 13.96 for the FTSE 100 (Source: FTSE).  However, not only do many of the mid-caps still offer decent growth prospects,  as well as income, but I believe that there are a number of reasons on the  macro-economic front why mid-caps in general could come good over the rest of  the year….</p>
<p><strong>TO READ THE ARTICLE IN FULL &amp; SEE RICHARD’S 3 MID CAP PICKS FOR H2 DOWNLOAD THE AUGUST EDITION OF SPREADBET MAGAZINE BY CLICKING THE IMAGE BELOW</strong></p>
<p><a href=”http://issuu.com/spreadbetmagazine/docs/spreadbet_magazine_v31_generic” target=”_blank”> <img src=”http://www.spreadbetmagazine.com/storage/issues/AUGUST-edition.png?__SQUARESPACE_CACHEVERSION=1362049735942” alt=”JULY COVER” height=”238” width=”173” /></a></p>

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