Bank of America (BAC) was the latest major bank to issue a recession shock warning two weeks after the Treasury yield curve inverted. Economists at the Bank of America expect inflation to worsen as the Russia-Ukraine war drags out, while the interest rate shock is just beginning to set in. Because the Fed is expected to remain aggressively hawkish for the foreseeable future to control the 40-year-high inflation rates, the U.S. is currently on recession watch.
Thanks to the inelastic demand for healthcare products, investing in healthcare stocks can hedge some of the market’s risks. Furthermore, only 66.4% of the total population have received at least one COVID-19 vaccine dose. As economies collectively push to accelerate the global vaccination drive, healthcare companies with COVID-19 vaccines in their portfolios are expected to benefit from the robust global demand.
