“Buying the Dip?”

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tennisplyr
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“Buying the Dip?”

Post by tennisplyr »

So who’s buying the dip or is this time different? I saw a headline in a local newspaper saying that Buying the Dip might be out of fashion.
“Those who move forward with a happy spirit will find that things always work out.” -Retired 11 years 😀
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JoMoney
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Re: “Buying the Dip?”

Post by JoMoney »

If it continues next week, I'm buying it 'cuz I gots dividends coming in ;)
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Candor
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Re: “Buying the Dip?”

Post by Candor »

So far I have moved 4% of my portfolio into this "dip". Will move up to 10% depending on the extent of the dip. I pride myself on not being fashionable. 8-)
The fool, with all his other faults, has this also - he is always getting ready to live. - Epicurus (341–270 BC)
Abalyon
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Re: “Buying the Dip?”

Post by Abalyon »

DCA and put more in on a recurring basis if you can. Even if you miss the bottom, these are still heavily discounted prices for long-term holding. :moneybag :moneybag :moneybag
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tooluser
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Re: “Buying the Dip?”

Post by tooluser »

I prefer making my own dip with a tub of sour cream, a packet of onion soup mix, and a little milk to thin it out just right. Perfect with plain Ruffles or Wavy Lays.

I'll probably get around to rebalancing again soon, but the asset classes don't seem to be signaling any method to do that in a predictable way, so there may be some selling involved as well.
Last edited by tooluser on Sat Jun 18, 2022 9:25 pm, edited 1 time in total.
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nisiprius
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Re: “Buying the Dip?”

Post by nisiprius »

"Stay the course" or "buy the dip." Your choice.

But the Bogleheads' strategy is "stay the course."

The problem with "buying the dip" is that you are kidding yourself in thinking that you know where the "dip" is when you are in it. During a sustained downturn, you don't know where you are within it. The apparent "dip" might be near the top, middle, or bottom. It is quite possible that "buying the dip" means you are buying at higher prices than the average price you would buy buying steadily.

Also, of course, keep in mind that catchy slogans sound good--
a) "Buy the dip"
b) "Buy low, sell high"
c) "Don't try to catch a falling knife"
d) "Cut your losses and let your profits run"

--but a and b are the exact opposite of c and d. Slogans like "buy the dip" are not really sound or consistent advice on what to do. They are really a stock of things that pop into your mind as pseudo-justifications for whatever it is that you want to do. If you want to buy, you tell yourself that you are "buying the dip." If you want to sell, you tell yourself that you are "cutting your losses."
...Buying the Dip might be out of fashion...
A lot of people do guide their investments according to what's fashionable, but I don't think it's a good idea.
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frostyblue
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Re: “Buying the Dip?”

Post by frostyblue »

tooluser wrote: Sat Jun 18, 2022 6:52 pm I prefer making my own dip with a tub of sour cream, a packet of onion soup mix, and a little milk to thin it out just right. Perfect with plain Ruffles or Wavy Lays.

I'll probably get around to rebalancing again soon, but the asset classes don't seem to be signaling any way to do that in a predictable way, so there may be some selling involved as well.
OP's post doesn't reference what brand he's referring too, but I would add that I've found homemade dip to be a much healthier and cost effective option vs. almost any store brands I've seen (I include guacamole in this category as well). Although I prefer to avoid using store bought soup mixes, I've found they have higher sodium content and usually lower quality ingredients vs. the DIY option.
If you're not opposed to making your own tortilla chips - which are just as easy/easier than the dip - than you've really got it made. Done right, you'll end up with a lower sodium, higher fat quality, higher protein, lower carb content, and overall better nutritional profile "snack" food that hits the spot and will win over party guests too. Has worked like a charm for me many a time!
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Re: “Buying the Dip?”

Post by retired@50 »

tooluser wrote: Sat Jun 18, 2022 6:52 pm I prefer making my own dip with a tub of sour cream, a packet of onion soup mix, and a little milk to thin it out just right. Perfect with plain Ruffles or Wavy Lays.
+1
This made me chuckle. My mother used this recipe when I was a kid.

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Re: “Buying the Dip?”

Post by incognito_man »

I went from 100% FXAIX to 60/40 with 40 in a SVF in late 2021.

I just went back to 100% FXAIX on Friday.
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Re: “Buying the Dip?”

Post by ncbill »

Only time will tell if it's "buying the dip" versus "catching a falling knife." :)
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arcticpineapplecorp.
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Re: “Buying the Dip?”

Post by arcticpineapplecorp. »

tennisplyr wrote: Sat Jun 18, 2022 6:32 pm So who’s buying the dip or is this time different? I saw a headline in a local newspaper saying that Buying the Dip might be out of fashion.
Just bought the dip when i got paid yesterday. It's called payroll deduction into a workplace retirement plan every two weeks. Is that what you're asking?
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Robot Monster
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Re: “Buying the Dip?”

Post by Robot Monster »

I heard that "sell the rip" is the new "buy the dip" but I ignored that noise and finally got through deploying my dry powder. Jeremy Siegel says I `won’t be sorry’ a year from now.
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arcticpineapplecorp.
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Re: “Buying the Dip?”

Post by arcticpineapplecorp. »

tennisplyr wrote: Sat Jun 18, 2022 6:32 pm So who’s buying the dip or is this time different? I saw a headline in a local newspaper saying that Buying the Dip might be out of fashion.
Did you read the article or just the headline?

There's a thing called clickbait that even newspapers aren't immune from.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
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nedsaid
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Re: “Buying the Dip?”

Post by nedsaid »

nisiprius wrote: Sat Jun 18, 2022 6:56 pm
The problem with "buying the dip" is that you are kidding yourself in thinking that you know where the "dip" is when you are in it. During a sustained downturn, you don't know where you are within it. The apparent "dip" might be near the top, middle, or bottom. It is quite possible that "buying the dip" means you are buying at higher prices than the average price you would buy buying steadily.
My philosophy has always been to buy good assets at reasonable prices, buy them at a discount if you can, but not to chase hot investments. In other words, I have always had a Value orientation.

Problem is, easier said than done as Nisiprius points out above. I have often posted about the Four Horsemen of Underperformance: AIG, GE, Microsoft, and Pfizer; darlings of the 1990's that I wanted to own but didn't buy because I was concerned that they were overpriced compared to their future prospects. I bought all four in the aftermath of the 2000-2002 bear market, my thinking was that I was picking up high quality companies at cheaper prices than I could have purchased them in the later 1990's.

What you find is that properly valuing a stock isn't easy, the biggest reason is that we don't know what the future holds. In retrospect, the stocks still had too much expectation built into them even at "bargain" prices. AIG was hit extremely hard in the 2008-2009 financial crisis with its foray into credit default swaps. GE had a terrible CEO after the legendary Jack Welch and their fortunes declined after some bad business decisions, GE also suffered during the 2008-2009 financial crisis and were the beneficiary of a bailout from Warren Buffett and Berkshire-Hathaway. Microsoft was dead money for seven years after I purchased it and its fortunes turned around with a new CEO arrived on the scene. Microsoft turned out to be a terrific investment but I had to be very patient. Pfizer turned into a decent investment but it too floundered for years.

So I bought the dip, and found out that I was well. . .the dip. One of the four stocks was eventually a spectacular investment but I had to wait a long time. Pfizer as I said was decent but it seemed like I bought what in effect was a bond. GE was a poor investment and AIG a disaster.

Value investing with my individual stocks turned out okay, I had my success stories as well. Over time, I have about matched the results of the Vanguard Value Index with a lot more work. Two points, Value investing is harder than it looks and just buying investments when they are down is not an automatic guarantee to success.

Most investors auto-invest with their 401(k) plans at work, putting money into investments with every paycheck. There are virtues to systematic investment, particularly when prices are down, many articles out there regarding dollar cost averaging. But even for auto-investing and dollar cost averaging to work takes time and patience. Stock markets don't always go up and can have extended periods of time where they don't seem to do much. What you really need is a long time horizon.

The average Joe or Jane investor should invest regularly and not be too concerned with valuations. The only times I might suggest tactical shifts in a portfolio would be during times of euphoria or during times of excessive pessimism. Even then, you still run the risk of being right too early or in some cases way too early. My experience is that tactical asset allocation is more about reducing risk than boosting return. If you have a target asset allocation and have a discipline for rebalancing the portfolio, that should take care of most of the management of risk.
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Re: “Buying the Dip?”

Post by invest4 »

I am turning 50 this year. I have quite a few years left before I consider retirement. Invest I must and have continued to buy including increased amounts at -10% and -20%. My AA has been drifting upward (from 60/40 to 70/30) and I am fine with that. Of course, I don't know if I will feel quite as much need or as be as frisky when I am no longer generating income via employment (retired).
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Re: “Buying the Dip?”

Post by freyj6 »

nedsaid wrote: Sat Jun 18, 2022 7:24 pm
nisiprius wrote: Sat Jun 18, 2022 6:56 pm
…..
This was a really great post. Super relevant to me because I’ve never bought individual stocks but in this most recent crash I’ve began eying a few of those great businesses that are always way too expensive. Part of me really wants to snap up Google at a fire sale price if this crash continues.

But it’s useful to be reminded that even some of these seemingly “can’t lose” decisions don’t always perform how you’d hope.



RE the OP: I’ve been buying this dip, and proving what Nisi said about how hard it is to get it right. I’m almost out of dry powder, and now it appears that we may have much further to drop. You never know if it’s a 15% drop or a 50% drop, and you never know if it’s going to last 5 months or 5 years.
Last edited by freyj6 on Sun Jun 19, 2022 4:55 am, edited 1 time in total.
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Re: “Buying the Dip?”

Post by oldcomputerguy »

My asset allocation is 60% equities, 40% bonds. I'll do what is necessary to keep it there.
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Re: “Buying the Dip?”

Post by best2u »

Prices are on sale. That gets my interest. When I was young I had an opinion on where the market was headed and acted accordingly. (Rightly or wrongly). After my life’s experiences, I will just let all the experts decide and then tell me where things are headed. Normally I feel most comfortable with 50% exposed to the ups and down of the market. I am willing to push that exposure on a market decline.

I put some money into stocks every time the market falls 4%. I do this on a graduated basis. Start out small and buy a larger $ amount the more it falls. Using the following purchase percentages works to my liking; 2,4,6,6,8,8,10,10,11,11,12,12. Notice the market will need to fall 48% to deplete the funds I have earmarked for these purchases. After the second purchase I am spending a larger percentage of funds, than the 4% that the market fell. Each purchase is for a greater number of shares. With etf’s it is fairly easy to implement a strategy like this. Just place the orders before and wait for the market to decline.

Just another strategy, and I would not have any idea what you folks should be doing. :sharebeer
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Re: “Buying the Dip?”

Post by UpperNwGuy »

I never buy the dip. I invest a fixed amount near the beginning of each month regardless of market conditions. When a windfall shows up, I try to get it into the market quickly. To buy the dip I would have to sell bonds to buy stocks.
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Re: “Buying the Dip?”

Post by Padlin »

In years past I've bought the dip with mixed results, kind of like should I DCA or buy in all at once. Yet another crap shoot.
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Re: “Buying the Dip?”

Post by burritoLover »

Dip buying where you are keeping specific cash poised to invest when the market drops rarely is beneficial - this has been studied a million different ways. There's an opportunity cost to carrying cash and the market can go a long time before you see a dip.

Where it might work is if you forgo big ticket purchases during the bear market and invest that instead. Say money you saved up for a family vacation (although nice job trading family experiences for greed), a car purchase that wasn't absolutely needed, etc. On the other hand, if this is instead money from your emergency fund - well, that's plain dumb.
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Re: “Buying the Dip?”

Post by jebmke »

Still haven’t reached a rebalance point.
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Re: “Buying the Dip?”

Post by z3r0c00l »

The idea that you wait and watch stocks to go up 100% while sitting on cash, then when they drop 20% you buy in is just nonsensical. I invest all of the money I can immediately as that is the optimal move to make. Too bad there is lots of dip buying talk around here, it can really confuse newer investors. Even if you treat dip buying like DCA, in other words a way to smooth out your investing psychology, I still think it is a dangerous habit. If you buy the dip wrong or DCA into a huge bull run, you are going to be second guessing yourself and thinking of doing more severe market timing. (Consider both to be market timing light.)

The solution is agnostic, automatic investing into a fixed AA you write down ahead of time. It is highly freeing as you can focus your energy on things you can control, like earning money in the first place.
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Re: “Buying the Dip?”

Post by firebirdparts »

Buying the dip. I think It’s too early. I avoided normal rebalancing on April 1 but I have rebalanced a little bit where I felt like it.
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Re: “Buying the Dip?”

Post by surfinagin »

In a bear market, does "Buying The Dip" become "Buying The Drop"?
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Re: “Buying the Dip?”

Post by Da5id »

oldcomputerguy wrote: Sun Jun 19, 2022 4:54 am My asset allocation is 60% equities, 40% bonds. I'll do what is necessary to keep it there.
If bonds hadn't fallen with stocks I'd probably have hit a rebalance trigger and "bought the dip". But haven't hit a rebalance yet so nope.
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Re: “Buying the Dip?”

Post by AnnetteLouisan »

I’ve been staying the course by continuing to max out tax advantaged accounts and adding to my taxable portfolio of equity index funds a few times a month from salary and low interest bank savings. I also bought a few t-bills. I haven’t done any tax loss harvesting yet - maybe I will later in the year. I also haven’t sold anything, ceased contributing or panicked over the downturn in stock prices. My next goal is simplifying and moving closer to the three fund portfolio (9 funds now).
Last edited by AnnetteLouisan on Wed Jun 22, 2022 10:47 am, edited 9 times in total.
JD2775
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Re: “Buying the Dip?”

Post by JD2775 »

Outside of my scheduled 401k contributions, I am buying whenever I have excess cash at the end of each month. Whether that coincides with a dip, who knows. I just buy when I have the money.
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Re: “Buying the Dip?”

Post by nedsaid »

freyj6 wrote: Sun Jun 19, 2022 4:53 am
nedsaid wrote: Sat Jun 18, 2022 7:24 pm
nisiprius wrote: Sat Jun 18, 2022 6:56 pm
…..
This was a really great post. Super relevant to me because I’ve never bought individual stocks but in this most recent crash I’ve began eying a few of those great businesses that are always way too expensive. Part of me really wants to snap up Google at a fire sale price if this crash continues.

But it’s useful to be reminded that even some of these seemingly “can’t lose” decisions don’t always perform how you’d hope.



RE the OP: I’ve been buying this dip, and proving what Nisi said about how hard it is to get it right. I’m almost out of dry powder, and now it appears that we may have much further to drop. You never know if it’s a 15% drop or a 50% drop, and you never know if it’s going to last 5 months or 5 years.
My post was meant to be a cautionary tale but not meant to discourage people from investing. Problem is, no matter how much due diligence that you do, there are things that you just don't know. Sort of like the Rumsfeld quote about the known knowns, the known unknowns, and the unknown unknowns. So you are always taking a chance and no matter how good you are at this, you will have your clunkers. Even Warren Buffett has had his share of investments that just didn't work out. Hard to imagine anyone who would perform more research than him.
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Re: “Buying the Dip?”

Post by magneto »

"Under normal market conditions, systematic rebalancers trim winners and bolster losers, moves that go against the conventional grain.
Dramatic bear markets signal the need for significant purchasers of losers, while extraordinary bull markets call for substantial sales of winners.
When markets make radical moves, investors demonstrate either the courage or the cowardice of their convictions."
Swensen

Not sure present conditions can be described as 'dramatic' (so far); more a gentle drift.


Somewhat spoilt for choice in these declining markets.
Can be somewhat overpowering, so going for breadth rather than depth.
Buying steadily into reasonably priced individual businesses.
No unduly concentrated bets.


Here in UK, FTSE100 peaked in dotcom halcyon 1999/2000 days at 6930 if memory serves.
Not much above that now !!


Sadly the Global Trackers need to drop variously another 20% to 25% even 30% before it makes much sense to begin to think about re-employing them, at least on value grounds.
The preponderance of fully priced US stocks distorting the numbers.
Just a personal view.

And definitely not a prediction since anything can happen with investors' sentiment.
Could turn around tomorrow, surge upwards and all be history !!
And we might be saying - "what bear-market?"
But doubtful ?
'There is a tide in the affairs of men ...', Brutus (Market Timer)
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Re: “Buying the Dip?”

Post by kabob »

tooluser wrote: Sat Jun 18, 2022 6:52 pm I prefer making my own dip with a tub of sour cream, a packet of onion soup mix, and a little milk to thin it out just right. Perfect with plain Ruffles or Wavy Lays.
+1 - Always a Fav,,, Never Lasts Long At Any Party!
EditAfterThought - I'll Buy that Dip
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Re: “Buying the Dip?”

Post by Miguelito »

Be it 401k contributions or smaller, scheduled after-tax investments, I am letting that ride at the AA that I am comfortable with via DCA. So that has been buying the dip on autopilot. The 401k is not getting touched for 15 years or so.

However, In April I coincidentally happened to have funds that amount to ~2/3 of the value of the after-tax investment account in cash. I've invested another 1/3 of the funds by buying the dips since mid April - a sort of DCA on the way down. Hindsight is always 20/20 so of course I wish I would have waited to invest, but overall, since I don't need the money, I can wait a while until things recover and that recent 1/3 chunk was invested at a 10%-25% discount versus the December highs.

Of course, I don't know how far down things will go and I am not sure if I should slow down the investment rates or just altogether stop until it looks like we have reached bottom and start investing on "the way up." Right now I have 1/3 in cash and 2/3 in broad index funds. Maybe I should buy bonds.
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Re: “Buying the Dip?”

Post by arcticpineapplecorp. »

freyj6 wrote: Sun Jun 19, 2022 4:53 am This was a really great post. Super relevant to me because I’ve never bought individual stocks but in this most recent crash I’ve began eying a few of those great businesses that are always way too expensive. Part of me really wants to snap up Google at a fire sale price if this crash continues.

But it’s useful to be reminded that even some of these seemingly “can’t lose” decisions don’t always perform how you’d hope.
the good news is you can own Google and lots of other great companies who have become cheaper now...buy the entire haystack.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
lostdog
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Re: “Buying the Dip?”

Post by lostdog »

Yeah. Heading out on a boat with a friend later today. I'm buying some potato chips and dip for a snack. I'll have to check out the different dip brands.
VT and chill...
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Re: “Buying the Dip?”

Post by Patzer »

I have a rules based asset allocation that increases my allocation to stocks when we are a certain percentage below the all time high and lowers as we rise back towards a new high.
Consequently, I have been buying the dip once we got below 20% down.
I will make further buys if it goes down to further target levels.

This is an accumulation only variable allocation rule, because during the accumulation phase, you can always work longer to fix your mistakes (and I am planning to retire young, so that should be an option).

Once I am in retirement, I won't want to take on the extra risk of buying into a downturn, and will just ride out a more conservative asset allocation through good and bad times.
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nedsaid
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Re: “Buying the Dip?”

Post by nedsaid »

arcticpineapplecorp. wrote: Sun Jun 19, 2022 1:04 pm
freyj6 wrote: Sun Jun 19, 2022 4:53 am This was a really great post. Super relevant to me because I’ve never bought individual stocks but in this most recent crash I’ve began eying a few of those great businesses that are always way too expensive. Part of me really wants to snap up Google at a fire sale price if this crash continues.

But it’s useful to be reminded that even some of these seemingly “can’t lose” decisions don’t always perform how you’d hope.
the good news is you can own Google and lots of other great companies who have become cheaper now...buy the entire haystack.
Want to make it clear that the great bulk of my investments are in mutual funds and ETFs. I used the stocks that I own as examples of behavior of investments in general. Not telling people to rush out and buy individual securities, you can find buying opportunities with the broad Index Funds.
A fool and his money are good for business.
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Re: “Buying the Dip?”

Post by NoRoboGuy »

What is happening in the markets this year is not a "dip." It is a full-on bear market.
There is no free lunch.
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Re: “Buying the Dip?”

Post by yules »

tennisplyr wrote: Sat Jun 18, 2022 6:32 pm So who’s buying the dip or is this time different? I saw a headline in a local newspaper saying that Buying the Dip might be out of fashion.
A local newspaper??? Is it at least a local financial newspaper, or are the stories about traffic signs and badger infestations? Always consider the source, friend.

Yules
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Re: “Buying the Dip?”

Post by jebmke »

NoRoboGuy wrote: Sun Jun 19, 2022 4:35 pm What is happening in the markets this year is not a "dip." It is a full-on bear market.
US down about 23-24% right? What was the decline in Q4 2018? I haven’t kept track.
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Re: “Buying the Dip?”

Post by NoRoboGuy »

Total US Stock Market (VTI) -23.97% YTD. If you count from the Dec 2021 high, it's -24.39%.

The 2018 Q4 correction from high to low was -18.4%.
There is no free lunch.
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Re: “Buying the Dip?”

Post by jebmke »

NoRoboGuy wrote: Sun Jun 19, 2022 5:35 pm Total US Stock Market (VTI) -23.97% YTD. If you count from the Dec 2021 high, it's -24.39%.

The 2018 Q4 correction from high to low was -18.4%.
So, not that big a deal, yet
When you discover that you are riding a dead horse, the best strategy is to dismount.
Pepper11
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Re: “Buying the Dip?”

Post by Pepper11 »

100% stocks.

Dollar cost average 1 % of portfolio into stocks each month. I am buying, just like every month.

Buy. Dont sell.
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Re: “Buying the Dip?”

Post by Northern Flicker »

Buy the dip or stay the course? Both! (I.e. rebalance).
Last edited by Northern Flicker on Sun Jun 19, 2022 8:25 pm, edited 1 time in total.
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Pepper11
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Re: “Buying the Dip?”

Post by Pepper11 »

Northern Flicker wrote: Sun Jun 19, 2022 7:19 pm But the dip or stay the course? Both! (I.e. rebalance).
No need to rebalance if 100% stocks. Just buy. Don't sell
ge1
Posts: 636
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Re: “Buying the Dip?”

Post by ge1 »

Yep, I have been absolutely been buying the dip. I had very little in stocks coming into this year due to valuation concerns, I am now almost fully invested.
MtnRetreat
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Re: “Buying the Dip?”

Post by MtnRetreat »

It all depends on your timeline. If you have at least 5 years before needing the money, I'd buy the dip.

Here's my theory:

Imagine a simple V shaped market that goes down to the bottom, then comes up. Now imagine you know when the bottom happens when it does, and you know the market (or the particular investment) will come back up. Let's assume numbers of the market starts at 100, dips to about 60, then comes back to 100 eventually.

On the day of the bottom you are happy to buy at 60. At your next paycheck you are happy to buy at 62. A few months later you are happy to buy at 70, then 75. A couple months later you are happy to buy at 80. A year later you are happy to buy at 99, then 100.

Since you know the market will be back to 100, you are happy to buy cheaper than that.

We don't know where or when the bottom will be, but (presuming a diversified portfolio) we know it will eventually come back to where it is today. So every time you buy below where it is today you will eventually profit. If you are happy buying on the way up, you should be happy buying on the way down at 99, 80, 75, 70, 62, and 60.

The only difference is time, but eventually it will come back up.

If you have a crystal ball, put your money today into something 100% safe, and then on the day of the bottom put it all into the market. The only way to do this is Pure Luck.

As a retiree I am being defensive, but if you are younger play the long game. Pay off high interest debt, get the company 401k match, and buy into a diversified portfolio.
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tennisplyr
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Re: “Buying the Dip?”

Post by tennisplyr »

MtnRetreat wrote: Mon Jun 20, 2022 11:46 am It all depends on your timeline. If you have at least 5 years before needing the money, I'd buy the dip.

Here's my theory:

Imagine a simple V shaped market that goes down to the bottom, then comes up. Now imagine you know when the bottom happens when it does, and you know the market (or the particular investment) will come back up. Let's assume numbers of the market starts at 100, dips to about 60, then comes back to 100 eventually.

On the day of the bottom you are happy to buy at 60. At your next paycheck you are happy to buy at 62. A few months later you are happy to buy at 70, then 75. A couple months later you are happy to buy at 80. A year later you are happy to buy at 99, then 100.

Since you know the market will be back to 100, you are happy to buy cheaper than that.

We don't know where or when the bottom will be, but (presuming a diversified portfolio) we know it will eventually come back to where it is today. So every time you buy below where it is today you will eventually profit. If you are happy buying on the way up, you should be happy buying on the way down at 99, 80, 75, 70, 62, and 60.

The only difference is time, but eventually it will come back up.

If you have a crystal ball, put your money today into something 100% safe, and then on the day of the bottom put it all into the market. The only way to do this is Pure Luck.

As a retiree I am being defensive, but if you are younger play the long game. Pay off high interest debt, get the company 401k match, and buy into a diversified portfolio.
Some will say : what if it doesn’t come back up?
“Those who move forward with a happy spirit will find that things always work out.” -Retired 11 years 😀
bigbadbuff
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Re: “Buying the Dip?”

Post by bigbadbuff »

tennisplyr wrote: Tue Jun 21, 2022 6:47 am Some will say : what if it doesn’t come back up?
Then you're no Boglehead, to start with
MtnRetreat
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Joined: Sat Jan 22, 2022 5:32 pm

Re: “Buying the Dip?”

Post by MtnRetreat »

tennisplyr wrote: Tue Jun 21, 2022 6:47 am
Some will say : what if it doesn’t come back up?
Then we are all in deep, deep trouble! Something truly catastrophic has happened. The Zombie Apocalypse. Total collapse of the US government and the US dollar. Total grid-down for years.

Otherwise the market always comes back over time. It may take a year, it may take a decade. People want to run businesses, to make money, to accumulate wealth. Unless capitalist activity is not possible, the market will come back.
z3r0c00l
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Re: “Buying the Dip?”

Post by z3r0c00l »

MtnRetreat wrote: Tue Jun 21, 2022 5:06 pm
tennisplyr wrote: Tue Jun 21, 2022 6:47 am
Some will say : what if it doesn’t come back up?
Then we are all in deep, deep trouble! Something truly catastrophic has happened. The Zombie Apocalypse. Total collapse of the US government and the US dollar. Total grid-down for years.

Otherwise the market always comes back over time. It may take a year, it may take a decade. People want to run businesses, to make money, to accumulate wealth. Unless capitalist activity is not possible, the market will come back.
So Japan had an Apocalypse with total collapse? The Yen didn't collapse, capitalism still exists there, people make money, there are 49 billionaires in Japan today. It is entirely possible for an economy to keep functioning reasonably well while the stock market declines for decades. It is especially likely after a bubble which we might have been in. You said "it may take a year, it may take a decade" but I am here to tell you it may take over 40 years. Many people here won't be alive in that time.
70% Global Stocks / 25% Bonds / 5% cash
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