Want to Trade U.K. Elections? Smaller Stocks Worked in the Past

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For big returns, buy smaller companies -- that’s the takeaway from previous U.K. elections.

The FTSE 250 Index rallied almost 18 percent on average in the 12 months following a general election, according to data since the 1987 vote. That’s more than twice as much as its annualized returns and double the advance of the FTSE 100 Index, which follows the biggest stocks in the market.