A Stock Market Crash Is Coming By the End of 2027, According to Some Economists. Here Are 2 Stocks to Buy Before That Happens

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Positioning for the Next Downturn: A Local Take on Defensive Stocks

With recession fears rising globally, South African investors should consider defensive sectors and monitor the rand closely.

Some economists warn of a market crash by 2027. While this might seem distant, it’s wise to look at sectors with steady cash flows and reliable dividends. Globally, big pharma stocks like AbbVie and Amgen are seen as safe havens because chronic disease treatments don’t stop even in recessions, supporting consistent earnings and dividends. On the JSE, we don’t have exact equivalents, but banks like Standard Bank and FirstRand tend to yield solid dividends and have weathered economic cycles better than industrials or retailers, which are more sensitive to consumer spending. The rand’s outlook will also shape performance: a weaker USD/ZAR could support exporters but hurt importers and banks with foreign currency exposure. If the market’s timing is off and growth continues beyond 2027, defensive positioning could lag. But prudence suggests trimming cyclical exposure and adding dividend-rich companies now. this is just our opinion and not financial advice