Tisco Bank's wealth advisory unit suggests moving away from energy stocks to biotechnology and healthcare as several US economic indicators have signalled a higher risk of recession.
Tisco said energy stocks tend to fall during an economic recession because there will be less demand for energy and oil. According to Tisco's research, energy stocks have decreased by around 75% on average during past economic crises.
Nattakrit Laotaweesap, head of wealth advisory at Tisco Bank, said the Federal Reserve's 75-basis-point rate hike at its June meeting signalled more aggressive rate hikes are to come.
