Even as the major stock indices hover near their all-time highs, fears of a stock market correction continue to grow. Risks from a spike in COVID-19 cases and potential tax increases have spooked investors and analysts. But against this backdrop, it could be worth buying and holding market-beating stock Eli Lilly and Company (NYSE:LLY) and Oracle (ORCL). Given these companies’ solid fundamentals, we think these stocks could generate substantial returns. Let’s discuss.Brushing aside an uncomfortable July inflation report, the Dow Jones Industrial Average hit a record 35,501.16 high yesterday and closed the session at 35,484.97, gaining 0.6%. The S&P 500 also hit its all-time high of 4,449.44 and closed the session 0.2% higher than its 4,447.70 prior close. Although the consumer price index rose 5.4% year-over-year in July, the increase in core inflation was lower than expected.
However, the resurgence of COVID-19 cases due to the rapid spread of the highly transmissible Delta variant and potential tax increases have heightened concerns among investors and analysts regarding the potential for a market correction in the near term. For example, Peter Cecchini, the director of research at Axonic Capital, recently asserted that “Equities are in for a sizable correction.” Furthermore, renewed lockdown measures and travel restrictions could pose considerable risks to the economic recovery.
Because the market is expected to remain volatile, we believe that if one had $2000 in disposable cash one should consider investing in market-beating stocks Eli Lilly and Company (LLY) and Oracle Corporation (NYSE:ORCL) because they possess sufficient fundamental strength to continue advancing.