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Goldman Sachs Sees Correction Risks Rising. Here's How to Prepare for a Storm
247Wallst· 2026-03-23 17:25
Core Viewpoint - Goldman Sachs warns that correction risks are increasing as the S&P 500 is down 7% from its high and the Nasdaq is in a formal correction, down 10% from its peak [1][4]. Market Conditions - The S&P 500 is approximately 70% of the way to a correction, indicating a rising likelihood of further declines [5]. - Geopolitical tensions in the Middle East are contributing to market corrections and potential bear market risks [2]. Investment Opportunities - Dividend-paying ETFs, such as the Schwab U.S. Dividend Equity ETF (SCHD), yielding above 3.3% and down 5% from highs, are highlighted as attractive options during this market correction [2][10]. - Sector ETFs, particularly in energy and utilities, are also noted for their potential as they have recently shed gains, presenting opportunities for investors [2][12]. Strategic Recommendations - Investors are advised to consider rotating into oversold risk-on stocks and stable dividend payers with lower betas to mitigate risks during the correction [7][8]. - Goldman Sachs' Chief Equity Strategist views the correction as a potential buying opportunity rather than a cause for panic, suggesting that such times can be good for bargain-hunting [8][9].
3 Safer Dividend ETFs to Pursue Amid Soaring Macro Worries
247Wallst· 2026-03-11 16:28
Core Viewpoint - The article discusses three safer dividend ETFs that are positioned to perform well amid rising macroeconomic and geopolitical concerns, highlighting their potential to withstand market volatility [1]. Group 1: ETF Performance - Schwab U.S. Dividend Equity ETF (SCHD) has increased by approximately 13% year-to-date and offers a yield of 3.3%, making it a solid choice for investors seeking stability [1]. - State Street Utilities Sector SPDR ETF (XLU) has risen over 8% year-to-date, benefiting from a shift towards defensive investments and the utility sector's role in the AI revolution [1]. - Vanguard International High Dividend Yield Index Fund ETF (VYMI) provides a yield of 3.3% with a price-to-earnings ratio of 14.4, appealing to investors looking for international exposure and lower volatility [1]. Group 2: Market Context - Rising macro and geopolitical worries are prompting a rotation from momentum stocks to low beta defensive plays, with dividend-focused ETFs gaining traction [1]. - The article notes that even traditional safe havens like gold have been affected by recent market volatility, indicating a challenging investment environment [1]. - The potential for a prolonged conflict between the U.S. and Iran could further influence market dynamics, making safety-focused investments more attractive [1].