Traders Gregory Rowe, left, and Daniel Ryan work on the floor of the New York Stock Exchange, Monday, July 2, 2018. (AP Photo/Richard Drew)
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Despite rising concerns among investors, the world economy is on a strong footing, with the global economy expected to grow 3.9 percent this year and next, according to the International Monetary Fund.While many investors are reducing their exposure to equities, most remain reluctant to completely move away from stocks. Investors have also purchased options that hedge against a drop of 10 percent or more in U.S. indexes, according to UBS strategists.Investors often buy dividend futures, or contracts that allow them to bet on companies' future payouts.The Euro Stoxx 50 dividend futures index .SX5EDFT, which aggregates dividend futures contracts, is down 2.1 percent year-to-date, after six consecutive years of gains, suggesting investors expect dividends to decline.Investors have built a notional $55 billion of short positions in U.S. dollar-denominated investment-grade corporate debt, according to IHS Markit.
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