In the arithmetic of the markets, as prices of stocks and bonds fall, yields rise. And with markets in decline, some funds now offer double-digit yields—remarkable payouts at a time when Treasury bonds and many bank certificates of deposit yield well below 5%.
Health stocks have long served as defensive holdings—investments that will not collapse in downturns. After all, consumers still buy drugs and visit physicians during recessions. This year some pharmaceutical stocks provided protection, avoiding big losses while almost every other industry sank deeply into the red.