Multi-decade-high inflation, supply chain issues, surging COVID-19 cases, and increasing jobless claims have been causing immense volatility in the stock markets lately. Major benchmark indexes have retreated significantly this month, raising concerns over the potential length and depth of the correction.
In this environment, investing in fundamentally sound mega-cap stocks is considered a safe strategy because these stocks usually withstand market fluctuations better than shares of smaller companies. Furthermore, these companies’ dominant market positions accord their financials some resilience even in adverse economic conditions.
