Is Buying the Dip Now a Bad Move or Value Investing?
US stocks continue to decline, especially with star stocks like Nvidia and Tesla, which have fallen 13% and 32% respectively this year. Many investors have started to buy the dip, but analysts believe the market hasn't fully dropped yet and caution against rushing to catch the bottom.
Is 2018's Market CRASH Repeating?
In October and December of 2018, $S&P 500(.SPX)$ dropped by 15% cumulatively.
The current market situation closely resembles the 2018 trade war scenario: uncertainty over tariffs + high interest rates. The biggest difference lies in valuations. Current PE of $S&P 500(.SPX)$ is higher than in early 2018.
If the tariff war continues to escalate and the economy weakens, the current market pullback (6% off its high) may not be over. Additionally, current market valuations are much higher than in 2018, so if these scenarios materialize, the pullback could exceed 20%.
In February, US ADP employment numbers increased by 77,000, the smallest increase since July 2024. Expectations were for an increase of 140,000, while the previous figure was 183,000. U.S. stock futures are fluctuating lower.
When to Start Buying the Dip?
As long as the economy doesn't truly fall into a recession, there will be some opportunities to buy the dip after such declines. Similarly, the market won’t just go straight down; there will be opportunities for rebounds even if the overall trend is downward.
When the market experiences a significant pullback (e.g., more than 15%) and economic data clearly weakens, the Fed will likely resume rate cuts, and the market will start to rise again.
In conclusion, the best approach right now is to maintain a relatively low position or hedge against risks, and wait for a larger pullback triggered by the continued escalation of tariffs and weakening economic data before considering buying the dip.
How do you view dip buying now?
Is a bad move or value investing to DCA?
Will US market drop 15% or more?
Leave your comments and also post to win tiger coins~
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For trading, if your stop loss is hit and market is weak. you can choose to stay out until market recovers before starting to trade again. these are my guidelines.
美股持续下跌，尤其是像英伟达和特斯拉这样的明星股，今年以来分别下跌了13%和32%。许多投资者已经开始逢低买入，但分析师认为市场尚未完全下跌，并警告不要急于抄底。
@Shyon @Aqa @TigerGPT @SPACE ROCKET @koolgal @LMSunshine @rL @Universe宇宙 @GoodLife99 @HelenJanet
现在如何看待逢低买入？
对于DCA来说，这是一个糟糕的举动还是价值投资？
美国市场会下跌15%或更多吗？
留下你的评论，也发帖赢老虎币~
That said, markets rarely move in a straight line. Even in a downturn, there will be short-term rebounds & trading opportunities. However, for a true long-term entry point, I’d prefer to see a deeper correction—perhaps around 15%—combined with clearer signs of economic weakness that could prompt the Fed to pivot.
For now, my approach remains cautious. Maintaining a balanced position, hedging risks, and waiting for more attractive valuations seems like the wiser move. While DCA can work for long-term investors, patience is crucial.
@Tiger_comments @TigerGPT