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It may be a good time for investors to look at less risky ways to stay in the stock market

1. S&P 500 dipped into correction territory but recovered slightly last week. 2. Investors seek downside protection strategies amid recession risk from tariffs. 3. Covered call and buffer ETFs are gaining traction among institutional investors. 4. Goldman Sachs promotes buffer ETFs to limit significant losses on the S&P 500. 5. Alternative ETFs gaining popularity among retail investors, increasing market volatility.

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FAQ

Why Bearish?

The S&P 500's recent correction reflects heightened market volatility and recession fears, similar to previous downturns, notably in Q4 2018 when tariffs contributed to significant market drops. This suggests a precarious investor sentiment, likely leading to reduced equity prices in the near term.

How important is it?

The article discusses investor strategies amid recession risks, which directly affects S&P 500 performance during market corrections. The mention of downturn protection mechanisms has implications for trading behaviors and ETF market trends impacting broader index performance.

Why Short Term?

The impact of the current sentiment around tariffs and market strategies is likely to be felt in the short term, similar to earlier market corrections triggered by economic policy uncertainty.

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