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The Motley Fool

If a Recession Is Coming, This Is the 1 ETF I'd Buy Without a Second Thought

• Despite inflation and AI job-displacement risks, no imminent recession is forecast; VOO offers diversified protection • Diversification across ~500 companies cushions downturns while capturing rebounds • Staying invested avoids missing the market's best days, which often cluster near its worst Economists aren't forecasting an imminent recession, and job growth has averaged 80,000/month this year. Still, risks loom: the Fed is raising rates to fight inflation, gas prices have climbed, and McKinsey estimates AI could force 11 million U.S. workers into new careers by 2035. If a recession hits, holding the Vanguard S&P 500 ETF (VOO) and riding it out is a sound strategy. Recessions are unpredictable but historically occur roughly every 6.5 years, so preparation matters. VOO spreads investment across nearly 500 companies across all sectors, reducing overexposure to any one area while ensuring participation in the eventual rebound. VOO also helps curb panic-driven decisions. As Warren Buffett has noted, market fear creates opportunity, while personal fear is the real risk. JPMorgan data shows seven of the S&P 500's best days over 30 years occurred within two weeks of its ten worst days; missing those seven days would have cut returns by more than half. Staying invested through downturns, rather than pulling out, is key to capturing the eventual recovery.
October 3, 2026 at 1:44 PMCHSCOVOO
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