Three months' worth of economic recovery and a turbo-charged stock market, both of which came to a fairly abrupt halt in April. That was the story of 2011, and, some worry, the story of 2012 as well.
As such, strategists are working diligently to devise strategies that would help those with a bad case of market deja vu cope with what lies ahead. Friday's weak nonfarm payrolls number, in which the economy created just 120,000 jobs in March, added to that sinking feeling.
Whether it's hedging against a temporary soft patch or a full-blown correction , many investors are looking to make sure they don't get caught sleeping in the same way they did last year.
"All of them tell me the same thing, regardless of what we think the market is about to do — a pullback or a correction — they don't want to sell all their positions and go into cash," says Randy Frederick, managing director of active trading and derivatives at Charles Schwab in San Francisco. "What they're typically looking for is what's the best way to maintain what they have and not get clobbered if we do have a pullback."
Here are five strategies that Frederick and others are employing for the time ahead:
1. Play Defense — and OffensePage 1 of 5 | Next Page