17 Jul 2017Why invest in large caps?
In hindsight of Brexit referendum and US presidential elections, investors in US have invested most of their funds in large companies in order to safeguard their investments. Investors generally look for a safer investment strategy that could beat the volatility outbreaks at the time of uncertainties. Money managers also advise investors to stick to large cap stocks and reduce exposure to mid and small cap stocks in the days of unstable macroeconomic and political environment. The chart below shows the impact of US elections and Brexit referendum on different indexes around the end of 2016.