The summer months can be a weaker time for stocks generally, but some stocks do buck the summer trend. Johnson & Johnson is one of these stocks with strong seasonals but also, as a healthcare stock, it is more likely to weather any coming recession. That is due to the fact that healthcare is considered a defensive sector because people require medical care regardless of the economic conditions. The demand for healthcare products and services remains relatively stable, providing a degree of resilience to healthcare stocks during economic downturns. Furthermore, during recessions, governments often prioritise healthcare spending to ensure the well-being of their citizens.
Over the last 15 years, between June 12 and July 12, Johnson & Johnson has gained 93.33% of the time for an average return of 2.59%. Will share prices rise again this year? Or will the Fed meet this week and deliver a policy surprise signaling even higher interest rates to come for the US?
Major trade risks: There are multiple risks in markets at the moment surrounding growth concerns, liquidity risks, and uncertainty over upcoming US corporate earnings.
HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.