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While the robust earnings reports and declining jobless claims are driving the markets higher, factors including surging COVID-19 cases, intensifying supply chain issues, and increasing inflation could soon precipitate a market correction. As such, we think it could be wise to follow a buy-and-hold strategy now.
With a wide market reach, expanding customer base, and impressive day-to-date developments, mega-cap stocks—which possess a market capitalization of more than $200 billion—have the potential to dodge the short-term fluctuations and deliver substantial returns in the long run. As dominant players in their respective industries, and possessing sound fundamentals, Alphabet Inc. (GOOGL), Pfizer Inc. (PFE), Abbott Laboratories (ABT), and Accenture plc (ACN) could be wise bets now.
