The demand for hedges remain high despite recent market turmoil, says RBC's Amy Wu Silverman

Market Volatility & Hedging - The market exhibits "sticky skew," indicating persistent demand for hedges despite recent market turmoil, suggesting underlying bearish sentiment [3][4] - Institutional investors remain reluctant in the rally, maintaining a bearish outlook despite resilient retail buying [8] - Low correlation among AI-related stocks and Mag Seven names may lead to increased volatility if correlations rise [15][16][17] Generational Investing & Market Psychology - Investors born before the 2008 financial crisis are more risk-averse due to past experiences, while those born after are more inclined to "buy the dip" [6][7][9] - Retail investors have shown resilience and continue to "buy the dip," contrasting with the more cautious approach of institutional investors [7][8] - The market's current state is described as a "paddling duck market," appearing calm on the surface but with underlying instability [17] Potential Market Risks - A multi-standard deviation drawdown could test the "buy the dip" mentality, potentially leading to increased hedging activity [11] - The intercorrelation of AI and Mag Seven stocks is not being reflected, which could lead to volatility [14][15]