Are medical stocks good to own in a recession? [Video]
Johnson & Johnson’s share price has had a 70% winning trade ratio over the last 20 years. Johnson & Johnson is a healthcare stock that was founded in 1886. The company develops consumer packaged goods and medical devices alongside pharmaceutical products. If the US is heading towards a recession health stocks have historically proven fairly resilient during recessions as medical care is still prioritised even as consumers cut back on other products.
From April 7 to May 15 Johnson & Johnson has gained 14 times in the last 20 years. The average return has been +2.43% with a 25.84% annualised growth rate.
Will Johnson & Johnson gain again this year in the period outlined?
Trade Risks: The main risk to this trade is any very negative news for Johnson & Johnson and/or a very hard US recession which could weigh on US stocks more generally.