If you’re looking for a reliable, renowned, and reputable stock, then blue-chip stocks are some of the best options out there that you can look into. A blue-chip stock is, by definition, a stock of a well-established, financially stable company with a significantly large market capitalization. Popular names in this category include McDonald’s Corporation (NYSE: MCD), Target Corporation (NYSE: TGT), PepsiCo, Inc. (NASDAQ: PEP), and The Procter & Gamble Company (NYSE: PG).
Typically, blue-chip stocks have remained popular among investors. We also saw this year when JP Morgan analysts commented in April that the S&P 600 Small Cap Index fell by about 5%, while the S&P’s large-cap stocks like Microsoft Corporation (MSFT) set record highs that month, allowing large-cap stocks to rise by about 4%. Analysts attributed these developments to traders settling in the comfort and familiarity of traditional blue-chip giants in favor of Reddit-approved meme stocks.
Investing is becoming more difficult by the day, even for smart money. The entire hedge fund industry is feeling the repercussions of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices.