Last month’s slump was a reminder of how quickly the market can go from a rally to a pullback. In this case, the situation is looking bright. The S&P 500 has rebounded more than 7% since its September low, nearly recovering those losses. It’s impossible to predict whether the market will head higher or crash in the months to come. But we do know one thing: Long-term investors will surely face future market crashes. That’s why it’s never too early to prepare.
To me, the best way to insulate a portfolio is with shares I consider “safe.” These are companies that have proven their resilience after a crash, and at the same time they offer strong products/services and growth prospects. Sounds like a lot to ask? Well, these three healthcare names prove it’s possible to deliver the whole package.
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Annual revenue at Abiomed (NASDAQ: ABMD), a maker of circulatory support devices, has been climbing for more than a decade. During this time, the U.S. Food and Drug Administration (FDA) cleared its collection of Impella heart pumps — the world’s smallest — for elective and urgent procedures including stenting and balloon angioplasty.
Impella devices assist pumping during a procedure or during situations — such as cardiogenic shock — when the heart is unable to pump enough blood to organs. More recently, the FDA granted the Impella two emergency use authorizations (EUA) for the treatment of COVID-19 patients with heart and lung complications.
The coronavirus outbreak caused the postponement or cancellation of many elective procedures, which hurt Abiomed. Worldwide Impella revenue fell 22% in the most recent quarter. But the company said stenting procedures using Impella since have resumed in most locations. In addition to this rebound in traditional business, the COVID-19 EUAs offer Abiomed another