The FTSE 250 is shaking off any fears over a potential 'hard Brexit' to break through to a new all-time high this morning.
Taking its cue from a risk-on mood in the markets in general, the mid cap index is up 1.5% to 18,466 as we write. Up until 2016 the FTSE 250 consistently outperformed the FTSE 100 in the 21st century.
We discussed some of the inherent attributes of mid caps which help explain such a divergent performance in this recent cover article.
Even after this year's Brexit vote inspired reversal of fortunes the FTSE 250 is still up more than 150% against a flat FTSE 100 over the last 16 years. The domestic focused mid caps took a bigger hit in the run up to and immediate aftermath of the decision to leave the European Union but have since recovered all of that ground and more.
Sterling hitting fresh 31-year lows on concerns the UK may leave the single market is a boon to the overseas earners which make up around 80% of the FTSE 100 and although the FTSE 250 is more UK focused, around half of its earnings are still derived from abroad.