The equity markets have been under pressure again after a brief recovery from the market correction in March. Ten-year Treasury yields hit their highest levels since 2018 earlier today, triggering an outflow of funds from the equity markets. Furthermore, persistent inflationary pressures have fueled bearish investor sentiment. The benchmark S&P 500 index has declined 7.7% year-to-date and 1.9% over the past three days, driven by surging market volatility.
Investing in blue-chip stocks with high dividend yields can hedge some of the market’s risks. This is because such multinational companies tend to have solid consumer bases and sufficient cash balances to weather market downturns.
