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10 Top Monkeypox Stocks To Watch Right Now

10 monkeypox stocks and monkeypox penny stocks to watch
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Penny Stocks To Watch & More If You’re Concerned About Monkeypox

Are you concerned about monkeypox? Even if you’re not, you might be interested in taking advantage of the speculative environment in the stock market today. If so, having a list of penny stocks and higher-priced stocks to watch might be helpful. Since the onset of the monkeypox FOMO, we’ve followed several companies closely. In light of recent developments, we’ll give a quick rundown of some of the highlights of each company, so you know what you’re looking at.

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10 Top Monkeypox Stocks To Watch

  1. Chembio Diagnostics Inc. (NASDAQ: CEMI)
  2. Aethlon Medical (NASDAQ: AEMD)
  3. E-Home Household Service Holdings Ltd. (NASDAQ: EJH)
  4. Tonix Pharmaceuticals (NASDAQ: TNXP)
  5. Applied DNA (NASDAQ: APDN)
  6. Siga Technologies Inc. (NASDAQ: SIGA)
  7. Chimerix (NASDAQ: CMRX)
  8. GeoVax Labs, Inc. (NASDAQ: GOVX)
  9. Bavarian Nordic (OTC: BVNRY)
  10. NanoViricides Inc. (NYSEAMERICAN: NNVC)

Chembio Diagnostics Inc. (NASDAQ: CEMI)

Chembio (CEMI Stock Report) caught a massive surge in trading activity in the stock market this week. In a recent article, we discussed how a shift in focus might be turning attention to ancillary or “pick and shovel” monkeypox stocks. These are the testing, diagnostics, and preventative product companies in the niche.

The company offers point-of-care diagnostic services focused on infectious diseases. Chembio has explained that its DPP technology offers broad market applications beyond infectious disease, though there is not a direct link to monkeypox itself. With upcoming earnings this week, it will be interesting to see if Chembio comments on how it may (or may not) address the uptick in monkeypox cases.

Aethlon Medical (NASDAQ: AEMD)

Aethlon’s (AEMD Stock Report) pipeline of treatments focuses on organ-threatening diseases. Its Hemopurifier has been studied to fight COVID-19 variants that can impact the efficacy of certain vaccines. Unlike Chembio, there has been mention of monkeypox directly. Aethlon says that “pre-clinical Hemopurifier studies have validated the broad-spectrum capture of numerous viral threats. These include Chikungunya, Dengue and West Nile virus, and Vaccinia and Monkeypox, which serve as models for human Smallpox infection.”

Next week the company releases its next quarterly report along with a business conference call. So if AEMD stock is on your list, keep August 9th in mind and listen to see if they mention monkeypox treatment development.

E-Home Household Service Holdings Ltd. (NASDAQ: EJH)

E-Home Household (EJH Stock Report) traded higher since it released news on July 27th linking it to monkeypox. The company offers household services in China. Everything from housekeeping and nannying to elderly and hospital care fall in its basket of services. Late last month and this month, E-Home announced monkeypox-related news, placing it on the radar for some traders.

It reported that it would explore potential monkeypox treatment programs through Its subsidiary, Zhongrun (Fujian) Pharmaceutical Co., Ltd., which specializes in personal care products specific to Chinese medicine. As a follow-up, this week, E-Home reported that it would supply traditional Chinese medicine herbs for potential monkeypox treatment programs.

Wenshan Xie, Chairman, and CEO of E-Home, explained, “Though there’s no treatment specifically for monkeypox virus, it shares similar symptoms to the more common smallpox virus, such as fever, muscle aches, and headaches, which TCM treatments have proven records of effectiveness in alleviating some of the symptoms. We hope to speed up and improve our studies so that we could deliver meaningful clinical outcome in the short future, bringing our vision for big health business to the next level.”

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Tonix Pharmaceuticals (NASDAQ: TNXP)

Tonix Pharmaceuticals (TNXP Stock Report) made an explosive move during early afternoon trading on Thursday. The company’s infectious disease pipeline includes a vaccine to prevent smallpox and monkeypox called TNX-801.  Tonix has already announced a new collaboration with the Kenya Medical Research Institute for developing TNX-801 and a Phase 1 clinical study could begin during the first half of 2023, according to a July PR.

With this link to a potential monkeypox treatment, TNXP stock has found itself on the list of penny stocks to watch.

Applied DNA (NASDAQ: APDN)

A former penny stock, Applied DNA (APDN Stock Report), helped wake up the small-cap market this week following a massive surge from under $1 to over $6.90 in just a few days. The epic move came after the company announced the start of the analytical validation of a PCR-based monkeypox virus test. If it gets validated, the company has plans to submit a package to the New York State Department of Health for approval.

Even a $12 million upsized offering at $4 hasn’t shaken investors hunting for monkeypox stocks. Accordingly, Applied DNA stated that it intends to use the net proceeds from this offering for further development of its Therapeutic DNA Production and MDx Testing Services, among other things, including potential acquisitions.

Siga Technologies Inc. (NASDAQ: SIGA)

What may have become one of the forerunners of monkeypox stocks, Siga Technologies (SIGA Stock Report), has remained red hot for months. What began as speculation in May has turned into a much longer-term trend for SIGA stock. It boils down to the company’s TPOXX smallpox treatment. Thanks to the correlation between the virus and monkeypox, the company has been one of the most popular names discussed.

According to Reuters, what has also helped is reports that the Department of Defense recently bought more doses of TPOXX from Siga to maintain a stockpile for treatment against smallpox. With new mandates in New York, Illinois, and California declaring a state of emergency, SIGA stock and others are gaining ground in the stock market today.

Chimerix (NASDAQ: CMRX)

Chimerix (CMRX Stock Report) is somewhat of a unique monkeypox stock to watch. Emergent BioSolutions Inc. (NYSE: EBS) previously bought exclusive worldwide rights to Chimerix’s Tembexa. The treatment is the first FDA-approved antiviral for all age groups for smallpox. In a May update, Paul Williams, SVP government/MCM business at Emergent, explained, “This transaction expands and further diversifies our medical countermeasures business with the addition of a small molecule therapeutic that aligns with the government’s smallpox preparedness strategy.”

There’s a 20% royalty on future gross profit in the US based on volume milestones above 1.7 million doses. It could also give Chimerix a 15% royalty on all gross profit outside of the US on a market-to-market basis. Chimerix will present at the Wedbush PacGrow Healthcare Conference next week. So if CMRX stock is on your radar, keep August 9th in mind.

GeoVax Labs, Inc. (NASDAQ: GOVX)

Like Siga, GeoVax (GOVX Stock Report) is somewhat of a bellwether for lower-priced monkeypox stocks. Shares were trading below $1 on July 22nd and managed to reach highs of $4.30 leading up to this week.

GeoVax’s GV-MVA-VLPTM platform can construct vaccine candidates using genetic sequences from viruses. A statement earlier this year has come to focus thanks to GeoVax’s Chief Scientific Officer, Farshad Guirakhoo, Ph.D.:

“Perhaps of critical importance is that the viral basis of our vaccine vector (MVA) has more than 50 years of safety records and has been recently approved by the FDA for prevention of smallpox and monkeypox diseases.”

In an earnings update this week, management spoke on the monkeypox threat. “Currently, evaluation is underway related to GEO-CM04S1 and the prevention of Monkeypox. The results are anticipated to demonstrate successful protection, validating that GEO-CM04S1 is protective against both COVID-19 and Monkeypox. GeoVax also anticipates validating its hemorrhagic fever virus vaccines as protective against Monkeypox, potentially providing unique vaccines preventing both hemorrhagic fever virus and Monkeypox virus in a single vaccine.”

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Bavarian Nordic (OTC: BVNRY)

What might have been one of the most under-discussed monkeypox stocks so far is Bavarian Nordic (BVNRY Stock Report). When the World Health Organization declared the monkeypox outbreak a global health emergency, the company obtained an expanded European label for its smallpox vaccine JYNNEOSTM (also known by the brand names Imvamune and Imvanex), to include the monkeypox virus.

It also obtained orders for the JYNNEOS® smallpox vaccine from the U.S. Biomedical Advanced Research and Development Authority (BARDA). This would allow for the first doses of this version to be manufactured and invoiced in 2023 and 2024.

According to headlines this week, the options have a value of $119 million and “represent the first options exercised to convert bulk vaccine…into freeze-dried doses of JYNNEOS smallpox vaccine.”

NanoViricides Inc. (NYSEAMERICAN: NNVC)

Recently, a company that developed drugs to combat things like pediatric hepatitis has come into focus. NanoViricides (NNVC Stock Report) works on antiviral therapies based on its “nanomedicines” platform. In addition to hepatitis, NanoViricides has also begun human trials of a SARS-CoV-2 drug candidate for COVID 19. So why is it on a list of monkeypox stocks?

This week it announced that it began drug development to combat the monkeypox virus. “We are excited to act rapidly to develop much needed, safe and effective monkeypox therapeutics,” said Anil R. Diwan , Ph.D., President of the Company. “We are confident of developing a strong drug to treat the monkeypox virus infection, based on our recent successes in developing clinic-worthy drugs against human coronaviruses (including SARS-CoV-2 variants that have continued the evolution of COVID-19 global pandemic) as well as Shingles.”

With this news, NNVC has now become one of the potential monkeypox stocks to watch this week.

A Presidential Catalyst For Monkeypox Stocks

This new niche has become a popular one for speculators. Keeping an eye on significant headlines, both good and bad, will help when it comes to gauging sentiment. This week President Biden was said to be weighing a health emergency for monkeypox.

Reports from the Washington Post have already highlighted that the Administration plans to declare the outbreak a public health emergency to substantiate awareness and increase access to funding to fight the spread. So far, this has helped the broader trend. The question is, how long will it last, and what will be the next headline to add more volatility to monkeypox stocks?

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Pfizer bid for sickle cell drug developer GBT said to be imminent

Pfizer is on the brink of announcing a deal to buy Global Blood Therapeutics (GBT) and its oral
The post Pfizer bid for sickle cell drug developer GBT…

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Pfizer is on the brink of announcing a deal to buy Global Blood Therapeutics (GBT) and its oral therapy Oxbryta for sickle cell disease for around $5 billion, according to press reports.

A deal could be announced as early as today, when GBT is scheduled to report its second quarter results, according to a Wall Street Journal report citing people familiar with the matter. Neither GBT nor Pfizer has commented on the rumour.

If confirmed, it will be another example of Pfizer leveraging the windfall cash generated by its COVID-19 vaccine Comirnaty and oral antiviral therapy Paxlovid to beef up its pipeline of new therapies, coming a few months after it closed a $6.7 billion acquisition of Arena Pharma and made an $11.6 billion takeover bid for Biohaven.

GBT won FDA approval for Oxbryta (voxelotor) as a daily tablet for the treatment of SCD in patients aged 12 and over in 2019, extending its use to include younger children aged four and over last December, and earlier this year also got a green light from regulators in Europe for the over 12s.

The $125,000-a-year drug is a haemoglobin polymerisation inhibitor designed to prevent the deformation or ‘sickling’ of red blood cells associated with the disease, and has been tipped to become a $1 billion-plus product.

Sales of Oxbryta have been a little slow to gather momentum, mainly because of payer resistance in the US, but are picking up the pace with a 41% rise to $55 million in the first quarter of this year.

There are around 100,000 people in the US living with SCD, and more than 20 million globally, according to the FDA.

If a deal is forthcoming, Pfizer would also claim inclacumab, a P-selectin inhibitor in phase 3 testing for prevention of the painful vaso-occlusive crises that afflict people living with SCD , as well as an early-stage polymerisation inhibitor called GBT021601 intended as a follow-up to Oxbryta.

Other suitors are also reported to be circling GBT however, according to Bloomberg, whose report sparked a 33% spike in GBT shares to more than $68 on Friday, not far shy of the company’s 52-week high of $73 and giving it a market capitalisation of more than $4 billion.

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Here We Go Again – Monkeypox Communications Challenges

In February 2020 I published a blog posting – Emerging Pathogens, Communications – that encapsulated my observations and learnings from my years work…

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Source: CDC

In February 2020 I published a blog posting – Emerging Pathogens, Communications – that encapsulated my observations and learnings from my years work in the early years of the HIV/AIDS pandemic in the early 1980s. As we sit, possibly, on the cusp of another large scale medical challenge with monkeypox, it seemed like a good idea to revisit the topic. When there is a new and scary thing we are facing, medically speaking, there are some truisms regarding the communications environment that can inform strategic thinking about how we talk about it.

  1. Facts are low, speculation is high – And nature hates a vacuum and there will be many who are willing to fill the void with misinformation. People want facts, and the fact is, facts are in short supply.
  2. Numbers don’t mean a lot – First of all, they change quickly – and are changing very quickly with monkeypox. In addition, there is often a lack of accurate reporting for many reasons.
  3. Points of reference will change – What we know, and what we don’t know, will change over time as we get more experience and gain wider understanding. That might seem like a good thing, but in fact, changing stories undermine credibility.
  4. Fraud potential is high – There are people who will take advantage of the situation and exploit it for political and/or financial gain. That, too, impacts credibility and can confuse people.
  5. Policy is likely to be ham-handed – Policies may be developed quickly and without adequate information and be based on emotion and bias more than facts. This is another factor that strains credibility.

Monkeypox is not COVID, and COVID was not AIDS. They each present distinct challenges and evoke particular fears and concerns. There are big differences between the three. But they are all viruses. And when it comes to communications challenges there are many commonalities.

First and foremost, in the absence of facts, fear can drive actions. And when a pathogen is newly emerging, facts are greatly outnumbered by questions. The degree to which companies, educators, businesses and service providers may want to prepare to deal with those challenges may depend on where they are, who their stakeholders are, and how big or small they are. At this stage though, better to consider the challenges that may lay before you know, before they present themselves.

Source: CDC

Analysis

It may be that monkeypox is contained early if we are lucky. There are reported signs that transmission may be slowing in the U.K. and the trend in the graph above appears to show some deceleration. That said, the numbers have increased quickly on an extremely steep curve. That means there is an increasing amount of virus out there. The virus has mainly spread among men who have sex with men and transmission is being attributed to skin contact. But the higher the numbers go the greater potential there is for more lateral spread. A presumptive pediatric case was reported last week in California. It is also a virus that can move between people and animals.

Containment depends on systems that are able to screen, test, treat, and prevent (both by means of avoiding circumstances that can enhance transmission and by vaccination). To that end, many things are not in our favor. An extremely splintered approach at federal, state and local levels impacts the coordination of a public health response. We have COVID fatigue in the extreme. And in terms of tools, we do not have a means for screening, meaning we do not know who is infected before they exhibit symptoms which may take several days; the testing situation is complicated because there is no quick, at-home testing like there is for COVID and may be best applied when there are lesions. But people may have other symptoms such as headache, chills, muscle aches, swollen lymph nodes and exhaustion. The only FDA-approved drug to treat is approved for smallpox, but no Monkeypox and has been difficult to access. In terms of prevention, while a vaccine has been developed, supply is very short and it, too, has been hard to get.

Additional challenges include the fact that the course of illness runs two to four weeks. If a person must self-isolate for that length of time it is not only difficult, but there may be unintended consequences. With men who have sex with men comprising the overwhelming majority of cases, a diagnosis is the equivalent of coming out. For many gay men that is not a problem. For many others, who may have wives and children, it can be a very large one, facing a situation that may have both personal and professional peril.

At the present time, there are some states which are reporting higher numbers than others. If the numbers do continue to climb, then a larger number of geographies will be impacted and most likely a wider circle of people, raising the chances that large employers, those in specific sectors, may face communications challenges sooner rather than later such as:

  • Travel and hospitality
  • Schools and universities
  • Hospitals
  • Institutional settings such as daycare centers, rehab and nursing homes (a case of a daycare workers was reported in Illinois last week)

What to Do

Every business, service or place of public accommodation is different. There is no one-size-fits-all approach to preparation. One must consider the size of the enterprise, the stakeholders and the level of physical contact and interaction with surfaces. That said, there are echos from both AIDS and COVID that shed light into how people may react to the emergence of another communicable condition. A few things to consider:

  • Review policies and assess what may need to be changed or amended; this is not just COVID return-to-work policies, but discrimination policies as well. Re-think many of the things you have had to communicate about a virus transmitted by air, and re-fashion to think about surfaces. Monkeypox will present distinct challenges.
  • Consider the questions and issues you may face. Can we catch monkeypox using the toilet? Trying on clothes? Do I have to sit next to the gay man? My co-worker says it is eczema, I’m afraid it is Monkeypox. Depending on your business, your clientele, there are different sets of questions that may arise for different settings. Think about what they might be and to what degree you are the one to have to provide the answers.
  • Assess the triggers for potential fear and conflict between employees, customers and users of any service.
  • Communicating in an environment where what we know changes, and what was certain yesterday may be uncertain tomorrow is always a strain on credibility. Therefore consider integrating reminders to that effect in your communications. What we know now is….
  • Gather reliable resources – the obvious ones such as CDC, FDA, and Departments of Health at the state and local levels, but also consider credible grassroots organizations, particularly ones that may resonate with stakeholders, particularly those dealing with gay-related health issues and key medical societies such as the American Society for Microbiology and others.

Many people think that preparation during such a nascent phase of the outbreak is over-reacting. I hope they are right. But having lived through AIDS and COVID, and seen early numbers quickly spell a different story over a very short period of time, one may be well-served to think it through now.

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Stocks for a recession: which companies have historically done well during recessions or are likely to this time?

Last week the Bank of England forecast a recession starting this autumn that it now expects to be deeper and longer than previously assumed. It also expects…

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Last week the Bank of England forecast a recession starting this autumn that it now expects to be deeper and longer than previously assumed. It also expects inflation to hit 13% by the end of the year just months after reassuring that it didn’t expect more than modestly high figures.

Having belatedly acknowledged the extent of the inflation problem, admittedly exacerbated by the impact on energy and food prices the war in Ukraine has had, the UK’s central bank’s nine-member Monetary Policy Committee voted to raise interest rates. Thursday’s 0.5 percentage points rise, which took the BoE’s base rate to 1.75%, was the biggest single increase in 27 years.

The European Central Bank and USA’s Federal Reserve have also taken aggressive measures on rates, with the former also raising rates by 0.5% to 0%. It was the ECB’s first rates rise in 11 years. The Fed went even further, raising rates for the fourth and largest time this year with a 0.75 percentage points hike to between 2.25% and 2.5%.

Aggressive interest rate hikes alongside high levels of inflation tend to result in recession with the combination referred to as stagflation. With inflation expected to remain high next year and not dropping back towards the target 2% before 2023, we could be in for an extended period of recession.

Why stock markets fall during a recession but not all stocks do

Stock markets historically do badly during recessions for the simple reason they are a proxy for the economy and economic activity. When economic activity drops, people and companies have less money or are worried about having less money, so they spend less and companies earn less. Investors also become less optimistic about their prospects and valuations drop.

But the kind of drop in economic activity that leads to recessions is not evenly distributed across all areas of an economy. When consumers cut back on spending, they typically choose to sacrifice some things and not others, rather than applying an even haircut across all costs. And there are goods and services that people spend more on rather than less when tightening their belts.

So while the net impact of a recession has always historically been the London Stock Exchange and other major international stock markets losing market capitalisation, or value, that doesn’t mean all the stocks that constitute them go down. Some go down by more than others. And some stocks grow in value because the companies sell the categories of goods and services people spend more on when they are either poorer or worried about becoming poorer.

Should we be investing “for” a recession?

This surely means all investors need to do to mitigate against a recession is to sell out of the stocks that do badly during an economic slump and buy into those that do well? In theory, yes. In practice, doing that successfully would mean being sure a recession will take place some time before it becomes a reality and timing its onset, then the subsequent recovery, well.

That is of course far easier said than done which is why even professional fund managers don’t attempt the kind of comprehensive portfolio flip that would involve. Some investors will make big bets on events like the onset of a recession or inflation spiralling out of control.

They are the kind of bets that make for dramatic wins like those portrayed in the Hollywood film The Big Crash, which tells the story of a group of traders who predicted and bet big on the 2007 subprime mortgage implosion that triggered the international financial crisis. But as the film relies on for its dramatic tension, the big winners of The Big Crash very nearly got their timing wrong. Another few days and they would have been forced to close their positions just before market conditions turned in their favour and lost everything.

The reality is the big, risky bets that result in spectacular investment wins when they come off are usually far more likely to go wrong than right. Which is why regular investors, rather than high risk traders using leverage, shouldn’t take them. At least not with their main investment portfolio if they don’t have the luxury of being able to justify setting aside 10% to 20% of capital for highr isk-high reward bets.

If you have a well-balanced investment portfolio with a long term horizon and you are happy with the overall quality of your investments, you may choose to do nothing at all to mitigate against the recession that is almost certainly coming. If you have ten years or more until you expect to start drawing down an income from your portfolio, your investments should have plenty of time to recover from this period.

But if you do want to rebalance because you feel your portfolio is generally too heavily weighted towards the kind of growth stocks particularly vulnerable to inflation, higher interest rates and recession, you might want to consider rotating some of your capital into the kind of stocks that might do well in a recession.

How to pick stocks that will do well in a recession?

There are two ways to highlight stocks that might do well in a recession. The first is the most obvious and simplest approach – look at which did well in previous recessions. We had a very brief recession at the start of the Covid-19 pandemic and a much more significant one in 2008/09 in the wake of the international financial crisis. Which companies did well over those periods?

The second approach is to add a layer of complexity into the equation and consider how and why the coming recession might differ from the two most recent historical examples. The 2020 recession was extremely unusual in its brevity. Within a couple of months, stock markets were soaring again as people under quarantine and social distancing restrictions spent more in the digital economy and generally on services and products to enhance their experience being couped up at home.

The 2008/09 recession was also different because it was caused by a systemic failure in the financial sector. Unemployment leapt which is not expected to happen this time around with an especially tight labour market one result of the combination of the pandemic and Brexit. Many households also have higher levels of savings built up during the pandemic which a significant number of analysts believe is softening the impact of inflation.

While there are likely to be constants throughout recessions, there are also differences that should be taken into account. Normally energy companies do badly during a recession as lower economic activity means less energy being used. But energy companies are currently posting record profits because of sky-high energy prices which are one of the major factors behind the expected recession. They should continue to do well while the recession lasts as energy prices dropping again is likely to be one of the catalysts behind the recovery.

The online trading company eToro recently published two baskets of “recession winning stocks” – one made up of Wall Street-listed companies and the other companies listed in the UK. The stocks in each basket were selected because they were the biggest gainers during the last two recessions. Interestingly, they also did well during the intervening period between 2009 and 2020, as well as in the aftermath of the coronavirus crash.

The portfolio of US stocks beat the S&P 500 index of large American businesses by 60 percentage points through the financial crisis between 2007 and 2009 and by 9 percentage points during the Covid crisis in 2020.

The portfolio of UK stocks beat FTSE-100 by 35 percentage points during the financial crisis and by 17 percentage points in the Covid crash. Since 2007, the US portfolio has gained 834%, more than twice the return of the Nasdaq and about five times that of the S&P 500. The UK portfolio’s 129% return is eight times more than the FTSE 100’s, excluding dividends.

eToro says:

“Well represented segments included discount and everyday-low-price retailers as consumers trade down, like Walmart (WMT), Ross Stores (ROST) and Dollar Tree (DLTR).”

“Fast food McDonalds (MCD) is related. Similarly, home DIY, like Home Depot (HD) Lowe’s (LOWE), and auto repair parts stocks Autozone (AZO) and O’Reilly (ORLY). Health care and big biotech is well-represented as inelastic non-discretionary purchases, like Abbott (ABT), Amgen (AMGN), Vertex (VRTX).”

“Also, domestic comforts from toys (Hasbro, HAS) to candy (Hershey, HSY), and getting more from your money and tax (H&R Block, HRB), and educating yourself (2U, TWOU).”

The UK portfolio included the drug makers AstraZeneca and GlaxoSmithKline, which did well because spending money on healthcare and medicines is essential and families don’t tend to cut back even when struggling financially.

The cigarette makers British American Tobacco and Imperial Brands also don’t usually see any downturn in demand because they benefit from a customer base addicted to their products. Both companies pay high and rising dividends. Consumer goods firms such as Unilever and Premier Foods also typically do well because they own strong brands that people bought even after price rises have been passed on.

Proactive Investor also picks out a range of London-listed stocks it expects to do well over the next year or so. In the energy sector that is doing so well at the moment it highlights Harbour Energy as a “core sector stock” and Diversified Energy Company as having “one of the lowest-risk free cash flow profiles in the sector”, while Energean (a client) provides “excellent visibility on multi-decade cash flows”.

Another difference to recent recessions could be how miners do during the one expected from autumn. Normally lower economic activity reduces for demand for commodities but the sector is also facing supply constraints that should see prices supported or rebound quickly.

Copper, mineral sands and diamonds look among the commodities most constrained in terms of supply, with limited supply growth under development. Mining and commodity stocks to look at are suggested as:

“Atalaya Mining (AIM:ATYM, TSX:AYM), Central Asia Metals, Kenmare Resources, Petra Diamonds and Antofagasta, with Tharisa PLC (LSE:THS, JSE:THA) tagged on as platinum group output to be in focus as automotive sales recover.”

“Gold stocks are seen as outperforming the market during the pullback phase, as in March 2020 and in the initial stages of a rebound, with top picks currently Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF), Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF), Wheaton Precious Metals and Yamana Gold (TSX:YRI, LSE:AUY).”

Credit Suisse has also picked out stocks that have historically outperformed during recessions, highlighting:

“London Stock Exchange Group PLC (LSE:LSEG), RELX PLC (LSE:REL), Experian (LSE:EXPN) PLC, Microsoft Corporation (NASDAQ:MSFT) and Visa Inc (NYSE:V).”

Don’t panic

While there is nothing wrong with doing some periodic portfolio rebalancing and potentially rotating more assets into stocks seen as likely to thrive in a recession, don’t panic. Recessions have always come and gone as part of the economic cycle and stock markets traditionally go on to greater heights during the subsequent recovery.

That means the chances are your portfolio will regain its losses and add new gains over the years ahead. Buying cheap growth stocks seen as likely candidates to flourish again during the recovery could be seen as just as sensible a tactic as rotating into recession-proof stocks. But if you do decide to reposition to some extent, look for stocks that have not only historically done well during recessions, or could be expected to during this one ahead, but are also healthy companies you would expect to keep doing well when markets recover. Then your success won’t come down to the fickle fate of whether or not you get your timing right.

The post Stocks for a recession: which companies have historically done well during recessions or are likely to this time? first appeared on Trading and Investment News.

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