Should You Buy the Dip?
When the U.S. stock market dips, it doesn’t have to mean doom and gloom for long-term investors. Rather than selling off, stock market dips can be a time to remain steadfast in your investments.
For some investors, particularly risk-tolerant or long-term investors, a downturn (like what we saw on March 4, when concerns about the newly-imposed tariffs on Canada, Mexico and China made stocks take a dive) can also signal an opportunity to “buy the dip,” or buy in at bargain prices.
‘Buy the dip’ meaning
“Buy the dip” is an investment tactic that follows the basic principle of “buy low, sell high,” but with a slightly more targeted approach. There are two requisites for buying the dip: a sharp decline in stock prices, and a…
