Wall Street is currently conflicted as to where they believe the stock market is headed. On one hand, you’re being told now is the time to buy. On Friday, Bank of America analyst Savita Subramanian wrote that "The bear market is officially over." On the other hand you have bearish analysts like Mike Wilson of Morgan Stanley, who wrote in a note on Monday that, "“We expect an abrupt reset on the equity risk premium once the market starts to worry about the risk to earnings.”In confusing times like these it can be prudent for investors to consider adding established mega-cap stocks to their portfolios that have a proven track record of outperformance.
A mega-cap stock refers to a publicly traded company with an extremely large market capitalization. Market capitalization, or market cap, is calculated by multiplying the current share price of a company by the total number of outstanding shares. While there is no strict definition for what constitutes a mega-cap stock, it generally refers to companies with a market capitalization of $200 billion or more.
