The U.S. markets have been reeling under the pressure of the looming interest rate hikes this year. Moreover, though predicted to be transitory, the Ukraine-Russia tensions have deepened further, causing additional pressure on the market. As Russian President Putin seems unrelentingly aggressive with his invasion policies, a strong shockwave is set to keep the U.S markets depressed for the time being.
While mega-cap stocks are known to offer stable returns when the market is unstable, the overvalued ones possess the odds of losing significantly on investors’ fears of losing out. Investors’ escape from mega-cap stocks is evident from the Vanguard Mega Cap ETF’s (MGC) 10.1% loss year-to-date.
