Goldman Sachs analysts told investors in a note Wednesday that the firm’s baseline view is that the S&P 500 will rise by 3% to 4,500 by year-end 2023 and will reach 4,700 (+7%) in 12 months.

However, analysts noted that some portfolio managers expect a recession to begin within the next year, “a view that is consistent with most economic forecasters.”

As a result, Goldman Sachs provided five reasons investors should consider adding downside protection to their equity portfolio.

“Put-call skew indicates that upside positioning is crowded and downside protection is attractively priced,” analysts wrote, adding that the “narrow market rally suggests drawdown risk is elevated.”

In addition, they pointed to equity valuations being elevated, equities already pricing an optimistic economic growth outlook, and positioning no longer being a tailwind to U.S. equities.

“Our Options analysts recommend buying an S&P 500 put spread collar ton hedge a long equity portfolio,” said analysts.