www.marketwatch.com
AQR researchers analyzed the “buy-the-dip” strategy across various assets and time periods, finding its performance underwhelming. Contrary to popular belief, simply buying assets after a price decline didn’t consistently generate superior returns. Their analysis suggests that factors beyond recent price drops, such as overall market conditions and specific asset characteristics, play a more significant role in investment success. The study challenges the notion that buying the dip is a universally profitable strategy and encourages investors to consider a more nuanced approach.
