What are blue-chip stocks?
Moreover, blue-chip stocks are often considered safe bets for investors during periods of market turbulence. These stocks are commonly included in prominent stock market indices like the Dow Jones Industrial Average or the S&P 500, and they are favoured by institutional investors and those with a long-term investment outlook. They tend to possess a substantial market capitalization, reflecting their data-size and influence in the market.
Investors who prioritize preserving their capital, receiving steady dividends, and minimizing risk frequently incorporate blue-chip stocks into their investment portfolios. Nonetheless, it's generally recommended to diversify across various asset classes and types of stocks to effectively manage risk and craft a well-rounded investment strategy.