One place to look for shelter may be stocks of pharmaceutical companies. Even in a recession, people aren't likely to cut their spending on medical care. While companies in so many industries are announcing or predicting disappointing earnings, Merrill Lynch analyst Steven Tighe expects all the major U.S. drug companies to match or exceed earnings expectations for the first quarter. While pharmaceutical stocks had a good year last year, the sector has sold off sharply this year, making them better values.
Most biotech firms are way off their highs and have been heading lower.
But investing in a major pharmaceutical firm buys you some biotech, too. The Kiplinger Washington Editors, Inc.