Some economists are warning of a stock market crash by the end of 2027, citing challenges like geopolitical instability and rising energy prices. Despite recent market strength, these experts suggest a downturn and potential recession could be on the horizon. While their predictions may not come to pass, investors can still prepare by focusing on stocks that historically perform well during economic downturns.
One such stock is AbbVie (NYSE:ABBV). The pharmaceutical company boasts a diversified portfolio of drugs, including treatments for autoimmune conditions, cancer, and migraines. These products maintain high demand regardless of economic conditions, providing consistent revenue. AbbVie also has a robust pipeline and a history of overcoming patent cliffs, making it a strong candidate for long-term investment.
Another promising stock is Amgen (NASDAQ:AMGN). The company has navigated past market crashes relatively well, even gaining value during downturns. Amgen's strong business fundamentals, along with a deep pipeline of new products, position it to outperform in a recession. The company's revenue and earnings are currently growing, despite facing challenges like government-led price negotiations and patent expirations.
Both AbbVie and Amgen offer attractive dividend yields, providing additional stability during market volatility. Investors looking to weather a potential downturn may find these stocks worthwhile additions to their portfolios.