inflation. Interest rates rise. Supply Chain Barriers. Covid-19 cases increase. Fear of a recession. The list goes on.
With the U.S. economy facing numerous challenges, 2022 will be a difficult time for equity investors. However, history shows that the market finds a way to ride out tough times and make new highs.
So if history repeats itself, time is on our side. The problem is that it could take a while for the major indexes to recover their current 20% losses. According to Murray Frank, a professor at the Carlson School of Management, it could take three to four years for the S&P to return to where it was at the beginning of the year.
That means the road back can be long and bumpy.It also means this is a good time for investors to lean towards Large Capwhich are companies with a market capitalization of $200 billion or more.
Why? Because large-cap stocks represent established businesses that have stood the test of time. They are leaders in their respective industries and have the financial strength to survive economic downturns.
Of the roughly 30 U.S. large-cap stocks, some look more attractive than others. No matter how long the recovery takes, these three technical names are designed to weather the storm and climb to new heights.
What are Microsoft’s growth drivers?
Microsoft Corporation(NASDAQ: MSFT) is the beneficiary of the global digital transformation and will continue for some time. Grand View Research estimates that this market will grow at an annual rate of 23.1% over the next decade. In addition to improving operational efficiency and reducing costs, the transition from traditional to digital infrastructure will bring new products and services to many industries around the world.
In turn, demand for the Microsoft Azure intelligent cloud platform should continue to grow. Already expanding in 60 regions around the world, Azure is becoming a force to be reckoned with in the cloud computing market. Amazon Web Services. Microsoft is investing heavily in the platform in anticipation of more and more businesses migrating their data and applications to the cloud.
Meanwhile, the Windows operating system and Office suite show no signs of relinquishing its grip on the personal computing market. Most of the world’s PCs are equipped with both, and there’s a lot of legacy information out there, and switching to an Apple or Google platform is often costly.
Then there’s Microsoft Teams, which is expected to be a growth contributor over the next few years as the workforce continues to operate remotely or in a hybrid setup. The gaming division, whose expansion was accelerated by the acquisition of Activision Blizzard, has many reasons to own Microsoft for a long time.
Does Broadcom have good growth prospects?
Broadcom (NASDAQ: AVGO) Is an great long play The two areas that are expected to be the fastest growing in technology – 5G networks and the Internet of Things (IoT). These advancements are made possible by the company’s expanding lineup of semiconductors and related technologies for both markets.
While the global buildout of 5G connectivity is a more immediate growth opportunity, IoT is probably Broadcom’s biggest and most exciting. The IoT industry is poised to make our daily lives smarter, faster, and safer by letting billions of devices—from smartphones to home appliances to city lights—communicate to make our world smarter, faster, and safer. way to interconnect.
Broadcom will have multiple other growth engines as this market develops. Its network and server storage solutions continue to be favored by businesses looking to upgrade their IT capabilities. The acquisition of virtualization leader VMware also bodes well for long-term growth and will be another example of Broadcom’s ability to expand into new markets.
Is Adobe a good long-term stock holder?
As one of the largest digital software companies in the world, Adobe Inc. (NASDAQ: ADBE) is a solid long-term bet. Its digital solutions are the driving force behind the media content created by corporations and small businesses around the world.
User-friendly Creative Cloud and Document Cloud suites help Adobe customers design and distribute Internet and video content across devices. These and future Adobe innovations should be in high demand for years to come as entertainment and advertising rapidly shift to digital.
To gain a competitive advantage digital world, companies are leaning more towards areas such as data analytics, ad targeting and social relevance. Given this demand, the company has been building its stable of businesses that can address these end markets through acquisitions and internal development.
Over the years, Adobe has succeeded by staying ahead of the curve, and it seems poised to successfully implement this playbook again. The explosion of digital video content is expected to be a huge opportunity over the next few years as businesses seek to connect with younger generations. Adobe will likely seize this opportunity with above-industry growth and significant share price appreciation.
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