Is “buy the dips” a good strategy?
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Date: July 11th, 2020 6:22 PM Author: Impertinent Shrine Cuckold
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) |
Date: July 11th, 2020 6:28 PM Author: Ruby stage
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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