How reliable are consensus earnings estimates in this environment?

FTSE 250 underperforms post-Brexit

In the immediate aftermath of the Brexit vote the FTSE 100 index, with significant overseas earnings, outperformed strongly, while the FTSE 250, seen as much more domestically-orientated, underperformed.

In more recent weeks the FTSE 250 has rallied, clawing back much of its relative underperformance but is there still value left in mid caps? We tend to consider valuation at the back end of our process rather than it forming part of our initial assessment. Once we have satisfied ourselves that a company possesses the business characteristics that we seek, we will then judge whether its valuation merits investment. How the changing face of the FTSE is creating more 'valuation anomalies' What this approach has revealed is that many of the mid-cap stocks we hold within our portfolios ...