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While the Fed’s signal this week that it will continue supporting the economic recovery, for now, fueled a rally in the major benchmarks, the largest Chinese real estate company Evergrande’s potential collapse could fuel volatility in the near term. Therefore, we think it could be wise to invest in large-cap stocks, which are known for their ability to withstand market volatility and generate stable returns. Investors’ interest in large-cap stocks is evidenced by the Vanguard Large-Cap Index Fund ETF’s (VV) 33% gains over the past year.
So, the likely market pullback could be an excellent opportunity to bet on fundamentally sound large-cap stocks América Móvil, S.A.B. de C.V. (AMX), HP Inc. (NYSE:HPQ), LyondellBasell Industries N.V. (NYSE:LYB), and ASE Technology Holding Co., Ltd. (NYSE:ASX). These four names look undervalued at their current price levels.
