Turning the calendar to a new year means new opportunities for long-term investors to put their money to work in the greatest wealth creator on the planet: the stock market. Following a shaky start to 2020, the benchmark S&P 500 ended the year higher by 16%. That’s nearly double its annual average return over the past four decades.
Though a lot of credit is bestowed on tech stocks and growth stocks for last year’s robust gains, a more encompassing round of applause is owed to large-cap stocks (those with a $10 billion or larger market cap), which predominantly fueled the rally. Large-cap stocks usually have time-tested businesses and are, in many instances, profitable. They may not offer the same upside potential as small-cap stocks, but they’re perceived to be considerably safer.
If you want to take advantage of what large-cap stocks have to offer, the following five could make you a lot richer in 2021.