Does ‘buying-the-dip’ work? Academics say yes

The Nasdaq is down 5% year-to-date. Is it time to 'buy-the-dip'? (Image: Getty)

Wed, 19 Jan 2022

The hordes of retail investors who have found a home for themselves on low-brokerage trading platforms and social media sites often use a simple mantra: “buy-the-dip”.It is a simplified version of the famous Warren Buffet quote – “Be greedy when others are fearful” – and can be seen across the internet whenever share prices head south.Buffet also said: “Risk comes from not knowing what you are doing.” However, that quote is much less likely to be shared on Reddit forums such as WallStreetBets.The...

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