THE GHOST TRAIN
THE FINANCE GHOST: Defend. Defend. Defend. Attack!
Bear markets reward patience. Spend your time working on your shopping list while your money safely earns a fixed return somewhere. When the time comes, you’ll be ready to attack
30 June 2022 - 05:00
Here’s some good news: the notion of “buying the dip” seems to have largely disappeared from the FinTwit vocabulary. This strategy works well in a bull market, when everything just bounces off the moving average or lower trendline and stays in an ascending channel. Share prices “only go up” and so does the value of your portfolio.
On the way back down, buying the dip is a cunning way to ruin your portfolio. In bear markets, you’ll find that patience is rewarded. In contrast, the ongoing buying of every dip is punished...
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