Buying Every Dip

Since the bottom in March 2009,  buying on the dip has been a good investment strategy.  In every case, the stock market rallied and reached a new post 2009 high.    In 2012, the dips became short and shallow, as investors realized the economy was healing and Fed policies were providing support.   Since then, the market declines have barely reached the 5% correction level.

For the most recent correction, I started buying when the dip started on May 22, with Ben Bernanke's announcement of a Fed taper.    Since then, the market declined a little over 5% and recovered to a new all time high.

For now, I expect that the market will continue to be volatile.  I will continue to buy a little on every dip since I expect the overall market trend to be upwards.

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This is not financial advice. Please consult a professional advisor.

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