How Amgen Outperformed the S&P 500 During Past Market Crashes
Yahoo Finance ·
Despite ongoing macroeconomic headwinds such as persistent inflation and soaring energy costs, broader equities have remained resilient this year. However, the constant threat of a market downturn means investors should always seek defensive options. One compelling choice is pharmaceutical giant Amgen, which has a proven track record of weathering severe market crashes. During the Great Recession from December 2007 to June 2009, Amgen significantly outperformed the broader market, even recording positive gains in 2008 when the S&P 500 suffered its worst damage. History repeated itself in 2022, as geopolitical tensions, rising interest rates, and inflation drove equities into a bear market, yet Amgen once again delivered impressive gains for investors.
AI 시장 분석
During the 2008 financial crisis and the 2022 bear market when the S&P 500 plunged, biotech firm Amgen (AMGN) actually saw its stock rise or proved superior defensive strength against the index. Amid ongoing macroeconomic uncertainties like high inflation and geopolitical tensions, investment funds are likely to flow into dividend and healthcare-related stocks expected to deliver stable earnings. Investors should consider reorganizing their portfolios centered on defensive stocks that simultaneously seek downside market protection and dividend yields.
상승 영향
- Biotechnology — Large pharmaceutical companies like Amgen proved superior defensive strength even during the 2008 and 2022 market crashes, and funds are concentrating on them due to stable earnings and dividend appeal amid recession concerns.
하락 영향
- Stock Market — There is a risk that the broader stock market will enter a bear market if macroeconomic instability persists, such as high inflation, rising energy prices, and geopolitical tensions.
DYAX 전담 분석
Amgen proved its exceptional downside rigidity by actually seeing its stock rise while the S&P 500 index plummeted significantly during past major market crashes in 2008 and 2022. This suggests that the characteristics of the pharmaceutical and biotech sector, which generates essential demand regardless of economic recession, emerged as a powerful investment destination during times of inflation and interest rate hikes.
You must keep in mind both the bullish scenario where a defensive stock rally continues if the stock market undergoes a correction overall due to future macroeconomic deterioration, and conversely, the bearish scenario where funds flow out into growth stocks as macroeconomic concerns are resolved. You should closely monitor major economic indicators and changes in the cash flow and dividend yield of the healthcare sector.
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