Bank of America: Mid-cap stocks expected to outperform small-cap stocks in the second half of the year

```htmlGolden Ten Data June 25｜Bank of America analyst Jill Carey Hall noted in a research report that although the bank still prefers small and mid-cap stocks over mega-cap stocks, as the second half of the year approaches, the reasons for small-cap stocks outperforming the market have weakened. Bank of America listed the rising risk of Fed rate hikes as a key differentiator, estimating that every 25 basis point increase would impact the profits of the Russell 2000 Index by about 2%. At present, the valuation of mid-cap stocks is similar to that of small-cap stocks, and the expected earnings growth momentum in the second half of the year is comparable. However, the bank pointed out that mid-cap stocks have the strongest performance guidance and earnings revision trends, making this a key factor in favoring mid-cap stocks.```