Blog: You, us, everyone

This week was marked by heightened volatility in financial markets. In the U.S., despite expectations of rate cuts before year-end, Wall Street pulled back after Jerome Powell noted that valuations were “fairly high.” The Fed finds itself trapped between a weakening labor market and persistent inflationary pressures.

Adding to this uncertainty, Donald Trump confirmed upcoming 100% tariffs on patented pharmaceutical imports, except for companies with manufacturing capacity or ongoing projects in the U.S. This protectionist measure raises the stakes for foreign pharmaceutical firms and introduces a new layer of risk for investors.

In Europe, attention is shifting to September inflation data, while in the U.S., Friday’s employment report will be decisive for the Fed’s next moves. Corporate Q3 earnings, expected in mid-October, will further shape market sentiment.

🔹 Current Economic Context

• U.S. monetary policy uncertainty, balancing inflation risks with slowing growth.

• Rising protectionist measures, particularly in the pharmaceutical sector, where firms without U.S. production face competitive disadvantages.

• Ongoing market volatility, amplified by political uncertainty ahead of the U.S. elections.

• Defensive positioning needed, favoring companies with stable cash flows and resilience to regulatory shocks.

🔹 Investment Recommendation – Concrete Examples

👉 1. NextEra Energy (NEE)

• U.S. leader in renewable energy (wind, solar, storage).

• Supported by structural tailwinds from the energy transition and demand relatively insensitive to economic cycles.

• Defensive profile: predictable cash flows, steady dividends, resilience against global volatility.

👉 2. Johnson & Johnson (JNJ)

• Diversified healthcare giant with a strong U.S. manufacturing footprint, reducing tariff exposure.

• Stable operations across pharmaceuticals, medical technology, and consumer health.

• Solid dividend history, defensive positioning in a volatile macro environment.

👉 3. Novartis (NOVN) (a more international option, but with adjustments underway)

• Global pharmaceutical leader.

• Significant geographic diversification, reducing reliance on the U.S. market alone.

• Needs to accelerate U.S. manufacturing to mitigate potential tariff risks.

🔹 Why Own These Stocks?

• NextEra Energy: direct exposure to the U.S. energy transition, long-term visibility, defensive value.

• Johnson & Johnson: financial solidity, domestic production, stable against protectionist threats.

• Novartis: international growth potential and innovation pipeline, with some caution regarding U.S. exposure.