The Labor Department recently reported an 8.3% year-over-year increase in Consumer Price Index (CPI) in August. The hot inflation data is expected to strengthen the Fed’s determination to keep raising rates, thereby increasing the odds of a recession.
The Healthcare sector is considered one of the most reliable sectors, providing a portfolio buffer when equity markets turn uncertain and volatile. Drug makers, medical device companies, and pharma companies primarily benefit from an inelastic consumer demand regardless of the economy’s situation. The global pharmaceuticals market is expected to reach $1.59 trillion in 2022 and grow at a 7.7% CAGR to $2.14 trillion in 2026.
