Smart Money Is Fleeing Tech for Johnson & Johnson Ahead of the Next Market Storm
Bear markets are a part of investing life, but you can prepare for them ahead of time.
Smart Money Is Fleeing Tech for Johnson & Johnson Ahead of the Next Market Storm
Overview
Technology stocks make up nearly 40% of the value of the S&P 500 index (SNPINDEX: ^GSPC). It isn't that technology is unimportant, but that its weighting is more than three times that of the next-largest sector in the index. It looks very much like Wall Street is leaning hard into technology, which could be a sign that it is time for smart investors to diversify away from tech. Johnson & Johnson (NYSE: JNJ) could be a good alternative.
The interesting thing about J&J is that investors aren't giving up on innovation if they buy it. Johnson & Johnson is one of the world's largest healthcare companies, with sizable operations in the pharmaceutical and medical device markets. Both sides of its business are driven by research and development, with intense competition the norm. Simply put, J&J has to be innovative to remain competitive.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
