Fidelity predicts revival for mega and large caps

It says after five years of “relative neglect”, blue chip stocks and mega caps have started a recovery. In the six months to 30 June, Fidelity says the FTSE 100 Index rose by 8%, almost double the return from the 250 mid-cap index. “Large-cap stocks offer some of the most attractive opportunities in the UK market at present, not only on grounds of relative valuation but also on the quality of the underlying business franchise,” Fidelity says. “Blue-chips are also better placed to withstand further turmoil in credit markets.” Fidelity International UK and European equities CIO Nicky Rich...