Blue-chip stocks are known for their ability to endure harsh economic downturns and protect investors from market volatility. So, while rising inflation concerns are threatening the surging equity markets, we think blue-chip stocks Microsoft (MSFT), Johnson & Johnson (JNJ), Walmart (NYSE:WMT), and PepsiCo (NASDAQ:PEP) should be valuable additions to one’s portfolio. Read on to learn why.Blue chip stocks represent established industry leaders that can keep their businesses ticking over even during adverse economic conditions. These stocks tend to be safe investment bets amid market volatility. Blue-chip stocks have continued to grow substantially despite the current market volatility and inflationary concerns.
This is evidenced by the blue-chip Dow Jones Industrial Average’s (DJIA) 12% gains year-to-date. Indeed, the DJIA hit its 35,091.56 all-time high on May 10, 2021.
While equity markets are currently surging, broader macroeconomic concerns could precipitate a correction soon. So, we think betting on blue-chip stocks Microsoft Corporation (NASDAQ:MSFT), Johnson & Johnson (JNJ), Walmart Inc. (WMT), and PepsiCo, Inc. (PEP) could help hedge one’s portfolio against a potential market correction.