WSJ reporters Gunjan Banerji and Caitlin McCabe explore the oft-cited advice to "buy the dip" in light of a continued downward trend in the market. Buyers hoping to capitalize on unusually low-priced stocks are surprised and disappointed to find that they are still losing money as prices continue to drop.
When will we hit bottom?
Banerji and McCabe quote Chief Research Analyst Jason Goepfert and his SentimentEdge Report:
"Many individual investors who bought the stock-market dip are sitting on losses," They write. "Through April, the S&P 500 fell an average 0.2% during the session after it notched a loss, according to Jason Goepfert at [SentimenTrader], making 2022 one of the worst years for buying the dip since 1974."