The markets have been very volatile in the first half of 2022, with most major indices down by more than 20% year-to-date. Inflation hit multi-decade highs and central banks increased interest rates aggressively. Added to that, China reintroduced Covid lockdowns, and the Russian-Ukrainian conflict created new supply-chain problems. This has weighed on the stock market, and experts are now warning that it will backtrack by about half of the year.
Fortunately, the healthcare industry is one sector that has been relatively recession-resistant. This is because healthcare is the last item to be cut when the dollar starts to go down. Because of this, many of the best stocks to invest in are associated with this sector. Take Merck, for example. The company is a global leader in the healthcare industry and one of the best stocks to invest in.
As interest rates continue to rise, the best stocks to invest in for 2022 will be those with sufficient pricing power to withstand the impact of inflation. Higher interest rates will make it more expensive for businesses to operate, which means that they will have a harder time generating cash flow. Therefore, the best stocks to invest in for 2022 are those that can withstand inflation and remain profitable, regardless of what happens to the economy.
There are thousands of mutual funds, exchange-traded funds, and publicly traded companies to choose from. However, many growth stocks have been affected by the recent market decline. As such, it is important to remain patient and stick to your plan. Although it can be scary at times, staying invested is essential to ensure you make the most of your money.
In addition to those companies that are performing well, there are other stocks that can prove to be good buys for investors. For instance, one of the best stocks to buy for 2022 is the Walt Disney Company, which is currently trading at a reasonable valuation. While the company is expected to endure an impending recession, it is likely to grow at a faster pace than many of its peers. Further, Disney is also rumored to launch a membership program, which could dramatically boost the company’s cash flow. This could make it even more attractive for investors.
Another great stock to invest in for 2022 is Johnson & Johnson. It’s a proven healthcare leader and has a solid dividend. Furthermore, its pharmaceutical portfolio is on pace to generate $1 billion in sales by 2022. The company has 99 drug indications in clinical development, which suggests that its best days are still ahead.
While the company’s share price has experienced a downturn this year, the underlying business remains strong. Its competitive position and strong margins make it a good defensive play. Even though the current market may be flush, there’s still a chance that higher interest rates and a looming recession will push investors to sell their positions.
