You wouldn't know it by the behavior of the stock market recently, but the outlook for the U.S. economy is as cloudy as a Midwest skyline before a downpour. We've moved past the spring lockdowns, but millions are still unemployed, and the COVID-19 pandemic continues to spread. The Federal Reserve isn't providing any reassurance, either; the latest statement from Federal Open Market Committee cautions that the progression of the coronavirus poses "considerable risks to the economic outlook over the medium term."
You can navigate this uncertainty in one of two ways. One, be comfortable with the risk level in your portfolio and do nothing. The market is strong now because investors are looking beyond the coronavirus crisis, and that may continue. Or, you can add stability and resilience to your holdings with a greater stake in large, well-established companies. And the simplest way to do that is to invest in large-cap index funds.
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