The stock market has been whipsawed by immense volatility since the beginning of the year, due primarily to concerns over high inflation and the Federal Reserve’s plans to raise interest rates several times this year. Although an improving labor market, strong GDP growth, and impressive corporate earnings indicate a steady economic recovery this year, market volatility will likely persist until the Fed’s actions are clearer.
Against this backdrop, investors should seek investment opportunities in mega-cap stocks because they tend to offer relatively stable returns and help dodge the market fluctuations. In fact, their market dominance should help them benefit hugely from the economic recovery this year. However, despite their recent declines, not all mega-cap stocks may be good bets now.
