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Is “buy the dips” a good strategy?

Doesn’t it equate to believing that stocks that have r...
Fluffy magical toilet seat people who are hurt
  07/11/20
Depends on the dip. When there is a big mkt decline, you can...
flatulent trip friendly grandma immigrant
  07/11/20
it depends on the time horizon. there's a short-term mean re...
soul-stirring senate telephone
  07/11/20
I will miss your poasts when they shut this place down
Stirring Yarmulke Point
  07/11/20
...
Lascivious stead sweet tailpipe
  07/11/20
MTUM has killed it recently, now go 5 years vs SPY IDK wh...
Buck-toothed Dingle Berry
  07/11/20
Nice moniker
Fluffy magical toilet seat people who are hurt
  07/11/20
MTUM has returned almost twice as much as SPY over that peri...
soul-stirring senate telephone
  07/11/20
Most people can’t time the market. Probably a better i...
Motley Sickened State
  07/11/20
The problem is, you don't know when the dips were until late...
Dun Boyish Meetinghouse
  07/11/20
btmfd
poppy queen of the night
  07/12/20


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Date: July 11th, 2020 6:22 PM
Author: Fluffy magical toilet seat people who are hurt

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: flatulent trip friendly grandma immigrant

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: soul-stirring senate telephone

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: Stirring Yarmulke Point

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: Lascivious stead sweet tailpipe



(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: Buck-toothed Dingle Berry

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: Fluffy magical toilet seat people who are hurt

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: soul-stirring senate telephone

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: Motley Sickened State

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: Dun Boyish Meetinghouse

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: poppy queen of the night

btmfd

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