Investors have become conditioned to buy dips in stocks since the Global Financial Crisis, a belief reinforced by the government’s aggressive market support during the COVID-19 pandemic. The 2018 bear market? Buy the dip. A new virus shutting down the economy? Buy the dip. Fed starts raising rates with authority? Buy the dip. Does President Trump enact disruptive tariff policies? Buy the dip.
There might come a day when buying the dip becomes a poor strategy, but the last few corrections and bear markets have been great opportunities to buy assets at a discount.
