No. of Recommendations: 13
That mantra "just buy the S&P" has been chanted over and over. WEB has recommended that. The Bogleheads swear by it. Irritating individuals on the old board preached it. It has been told so often for so long that it can't possible be wrong. Or can it?
Buying on a dip DOES make sense...but only if the thing you're buying offers a decent return starting from its new price. i.e., if it's now undervalued, or at most fairly valued. You just have to know what you're buying, and what its value is, or at least *some* kind of crude guess. The logic that "it just dipped in price" isn't enough.
I don't think the best estimate of the future trajectory of value of most stocks is what it was a couple of months ago, but opinions can differ.
Jim
