Multi-decade high inflation rates and aggressive rate hikes have kept the equity markets under pressure over the past few months. The volatile market backdrop is evident from the CBOE Volatility Index’s 50.4% gains year-to-date. Morgan Stanley’s Michael Wilson expects the benchmark S&P 500 index to slide 18% by mid-August this year.
Investors have been focusing on large-cap stocks to hedge their portfolios against the current market risks. Large-cap growth companies tend to have a versatile product portfolio and robust financials, allowing them to withstand uncertain market conditions better than relatively smaller companies.
