Amid widespread macro headwinds, recession odds are increasing. However, Goldman Sachs Group (GS) expects the United States to avoid a recession. According to the bank, the ratio of household net worth to disposable income is at a record high, the personal savings rate is amplified, pent-up savings are ample, and Americans overall have a healthy financial surplus.
Moreover, the medical industry has relatively inelastic demand helping it to survive recessionary pressures. People continue to spend on drugs and health care regardless of market uncertainties. So, investing in medical stocks is a way for investors to hedge against recession risks.
