Generally speaking, two sectors that do well in a US recession are consumer staples and healthcare stocks. Although consumer disposable income may fall people will still make consumer staple purchases, often in more discount focus stores like Walmart and Costco. The health care sector still remains robust in a recession since consumers still keep up health care payments and prioritise health treatments as far as possible.

You can use Seasonax to screen these different sectors of the S&P500 in order to find strong seasonal patterns like in Gilead Sciences, an American biopharmaceutical company. Over the last 10 years, Gilead Sciences had an annualised return of 47.12%.

Major trade risks: The major risks are from any particularly negative news for Gilead sciences.


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High-Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure. *Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party, or otherwise. Without the approval of HYCM, reproduction or redistribution of this information isn’t permitted.

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