Buy the dip??

k6chris

I have read and listened to many comments about "buying the dip" but how do you know where the dip is until after any market has recovered?? 

Thanks!

Brie

I'd say "the dip" is anywhere on the way down or on the way back up.  It's not just one particular point though understandably we'd all want to buy at the bottom of the dip.  

eskbanker

k6chris said:

I have read and listened to many comments about "buying the dip" but how do you know where the dip is until after any market has recovered??

You don't know where the bottom is until after the event - if it was possible to know then everyone would buy in at that!

PloughmansLunch

I triple-dipped on monday as I bought a chunk of a global tracker that had recently tanked in price, plus a yellow-stickered tub of hummous on the 'whoops' shelf of the local co-op.

Exodi

k6chris said:

I have read and listened to many comments about "buying the dip" but how do you know where the dip is until after any market has recovered?? 

Thanks!

Buy a crystal ball I guess? Knowing when the bottom of a dip would be the key to infinite wealth akin to knowing what tomorrows lottery numbers will be. Generally people are referring to buying during a general 'down period' where something bad is happening, in the hope that it will eventually recover and you'll make some moolah.

As to whether we're at the bottom - Trump could announce tomorrow that he's rowing back on China tariffs and stock prices would likely shoot up, just as well as he could increase tariffs to 500% on China and see the stock tank further (and sadly, I think I know which of these two scenarios is more likely) - no-one (except Trump and time travellers I guess) really knows what will happen next.

vacheron

Just use regular automatic investments of a fixed sum of money and you will buy the dips automatically without even having to think about it. 

By the time you work out it was a dip, you're too late.  

InvesterJones

k6chris said:

I have read and listened to many comments about "buying the dip" but how do you know where the dip is until after any market has recovered?? 

Is exactly the right question. Weight the credence of the things you've read/listened too accordingly. Personally I haven't seen anyone saying buy the dip, instead all I've seen is carry on doing what you were doing - don't react.

aroominyork

So by now we've recognised that a dip is not the same as the bottom - the market can carry on dipping. The market is about 15% down. I would say you should not invest unless you are prepared for the market, in the short term, to fall by 40%-50%. 

alfred64

The charts indicate it is too early yet to buy.

MeteredOut

alfred64 said:

The charts indicate it is too early yet to buy.

Did the charts tell you it was going down 15%?

WindfallWendy

I've taken £20k out of my premium bonds with a view to shoving it in my S&S ISA.... But thinking I might do a bit this week, a bit next month and maybe a third bit another time... Rather than shoving it all in now.

Thoughts?