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Is “buy the dips” a good strategy?

Doesn’t it equate to believing that stocks that have r...
Snowy know-it-all kitchen
  07/11/20
Depends on the dip. When there is a big mkt decline, you can...
lavender infuriating property
  07/11/20
it depends on the time horizon. there's a short-term mean re...
Laughsome brunch associate
  07/11/20
I will miss your poasts when they shut this place down
narrow-minded slippery macaca
  07/11/20
...
razzle-dazzle bright liquid oxygen
  07/11/20
MTUM has killed it recently, now go 5 years vs SPY IDK wh...
passionate space digit ratio
  07/11/20
Nice moniker
Snowy know-it-all kitchen
  07/11/20
MTUM has returned almost twice as much as SPY over that peri...
Laughsome brunch associate
  07/11/20
Most people can’t time the market. Probably a better i...
orange nursing home trust fund
  07/11/20
The problem is, you don't know when the dips were until late...
Cracking brilliant private investor
  07/11/20
btmfd
Chestnut Crotch
  07/12/20


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Date: July 11th, 2020 6:22 PM
Author: Snowy know-it-all kitchen

Doesn’t it equate to believing that stocks that have recently done poorly do better in the near future, on average, than stocks that have recently done well? I don’t know that I’d expect that to be the case.

Seems like believing in buying the dips is falling victim to some kind of cognitive bias.

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589514)



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Date: July 11th, 2020 6:24 PM
Author: lavender infuriating property

Depends on the dip. When there is a big mkt decline, you can definitely upgrade in stock quality. If it is the company or sector only, it is more dangerous.

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589523)



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Date: July 11th, 2020 6:28 PM
Author: Laughsome brunch associate

it depends on the time horizon. there's a short-term mean reversion effect, where the worst monthly or weekly performers get a short-term pop, but the stocks that have done the best over a longer period (3 to 16 months) tend to continue to outperform.

look at MTUM versus VLUE. MTUM has killed it.

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589549)



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Date: July 11th, 2020 6:32 PM
Author: narrow-minded slippery macaca

I will miss your poasts when they shut this place down

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589569)



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Date: July 11th, 2020 6:34 PM
Author: razzle-dazzle bright liquid oxygen



(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589575)



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Date: July 11th, 2020 6:36 PM
Author: passionate space digit ratio

MTUM has killed it recently, now go 5 years vs SPY

IDK why anyone does anything other than 0 fee S&P ETF or something like VTI.

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589587)



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Date: July 11th, 2020 6:37 PM
Author: Snowy know-it-all kitchen

Nice moniker

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589593)



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Date: July 11th, 2020 7:01 PM
Author: Laughsome brunch associate

MTUM has returned almost twice as much as SPY over that period

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589691)



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Date: July 11th, 2020 6:47 PM
Author: orange nursing home trust fund

Most people can’t time the market. Probably a better idea to just dollar cost average.

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589638)



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Date: July 11th, 2020 7:09 PM
Author: Cracking brilliant private investor

The problem is, you don't know when the dips were until later.

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40589713)



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Date: July 12th, 2020 12:05 AM
Author: Chestnut Crotch

btmfd

(http://www.autoadmit.com/thread.php?thread_id=4582442&forum_id=2#40591009)