The U.S. and countries worldwide have been experiencing a growing chorus of recession calls in 2022. Accordingly, the S&P 500 index is down 19% this year. On the other hand, Merck (NYSE: MRK) is up 20% year to date and Pfizer (NYSE: PFE) is down only 13%. Both outperformed the index while inflation remains at multi-decade highs.

As investors contemplate the likelihood of consumers tightening their purse strings, certain sectors are getting hit harder than others. For instance, the S&P Retail Select Industry Index tracks discretionary consumer stocks in the S&P 500. The index is down 28% this year. Additionally, the S&P Semiconductor Select Industry Index, which is down 30% in 2022, tracks stocks supplying consumer electronics companies.

If inflation persists and countries around the globe enter a recessionary period, consumers could forgo spending on retail and electronics. However, medicine is not something people can pass on to save money. Private or government insurance programs often pay pharmaceuticals, usually making out-of-pocket expenses manageable. Here's why Pfizer and Merck could continue to outperform in a recession.

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Source Fool.com