Domestic mid cap stocks may be on their way to being dubbed “the Goldilocks asset class.” This is the thesis of Arnerich Massena’s newest white paper, which analyzes long-term risk and return trends of U.S. mid cap stocks versus other U.S. equity asset classes. Historically, mid cap stocks seem to fit into a “sweet spot” of higher return for lower risk — so much so that they could be said to earn Goldilocks’ exclamation of “juuuuust right.”

The paper examines possible factors that may contribute to the long-term opportunity mid cap stocks represent, from business cycle to earnings growth, and includes a discussion on how to position mid cap stocks within a portfolio.