2022 is likely to go down as one of the most challenging years for investors since 2008. YTD, the S&P 500 is down more than 20%, while there is equal pain in the bond market due to inflation and a hawkish Fed.
However, there are a handful of sectors outperforming over the past few weeks due to longer-term rates turning lower as recession odds spike higher. Out of these sectors, biotechs are the most attractive from a valuation and growth perspective. Additionally, biotech stocks are less impacted by a slowing economy or change in monetary policy.
