When A Dip Is An Opportunity—And When It’s A Trap

Market jitters returned last week as the S&P 500 fell 2.5%—bringing it to just 1.5% above where it stood back in February.

When markets take a dive, the reflexive advice often comes quickly: “Buy the dip!” But should you follow it?

Sometimes, buying the dip can be a smart way to pick up quality assets at a discount. Other times, it can feel more like grabbing a falling knife. The key is knowing the difference—and understanding what the market is really telling you.

Let’s look at when it makes sense to buy the dip, when it doesn’t, and how to approach market pullbacks with a level head.

This post originally appeared at Investing Daily.