Is “buy the dips” a good strategy?
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Date: July 11th, 2020 6:22 PM Author: Floppy Sickened Menage Old Irish Cottage
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: turquoise ticket booth
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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