Is Inflation a Threat for Pharma Stocks?
Unless you've been living under a rock, you've already heard that, per the latest economic data hot off the presses, U.S. inflation rose by 7.5% in the past year. As intimidating as that figure may be, I have some good news for you. It just might be possible to protect your hard-earned cash from the detrimental impact of inflation by parking it in the right pharmaceutical stock.
Of course, many other types of stocks could also be a better move than holding your wealth in cash. But I'm of the opinion that pharmas have at least one edge against inflation that makes them a decent choice, at least in some cases. Let's investigate why inflation isn't likely to cause too much damage to the companies responsible for developing and commercializing new medicines.
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Source Fool.com
