As pharma companies begin reporting earnings next week, investors could be forgiven for paying more attention to the Federal Reserve.
red hot with inflation And 0.75-percentage-point rate increase With markets almost ripe at the next meeting of Fed policymakers later this month, investors are looking for safety wherever they go, and drug stocks offer some stability. The industry is now trading in virtual lockstep with the Goldman Sachs Financial Conditions Index — sending pharma stocks in dire circumstances — as investors flock to stocks that are expected to weather bearish trends relatively well.