It seems that aggressive, contractionary monetary policies have already paved way for another correction for equities. With inflation, aggressive rate hikes and fear of a recession, I would focus on large-cap stocks to buy. It’s worth noting that large-cap stocks generally have a low beta. As such, a big move in a short time period does not come often. However, with several headwinds, revised earnings and margin guidance have resulted in some knee-jerk reaction. Even for large-cap stocks. A good
When the market drops sharply, it creates an opportunity to buy quality stocks at a bargain.
With the Federal Reserve aggressively increasing interest rates by 75 basis points, equity markets have plunged. Amid the fear and uncertainties, I see a golden opportunity for investors to accumulate quality stocks. While I would selectively look at growth stocks, I would be overweight on certain blue-chip stocks in current market conditions. Coming back to the market correction and an opportunity to accumulate, the following point is worth noting: If we look at the equity market chart for deca