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Stocks & Markets Analysis
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Buy the dips?

$S&P 500 Index(.SPX.US)$
$Nasdaq Composite Index(.IXIC.US)$
$FTSE Singapore Straits Time Index(.STI.SG)$
Dip buying has been proven to be a winning strategy since 2009. In an analysis of S&P 500 , Compound Advisors' Charlie Bilello found that since 2009 whether experiencing loops of minor dips and quick recoveries, or large downturns followed by vertical comebacks, the index has always forged ahead to new highs. Every drawdown since the pandemic has been followed by a comeback to a new high.
Has this always been the case? No. The S&P 500 took 7 years to reach a new high from 2000 to 2007 after a 51% decline between Mar 2000 and Oct 2002 from its previous record, and 6 years to notch a fresh high from 2008 to 2014 after a 58% loss between Oct 2007 and Mar 2010. Nasdaq took 13 years to return to its record high after the Dot-com Bust in Mar 2000.
S&P posted a -5.26% return for Jan 2022 - worst month since 12.5% plunge in Mar 2020 and Nasdaq had the 2nd worst Jan sell-off in 2022. Poor Jan performance has historically been followed by weakness in Feb. Additionally, Feb had been the 2nd worst month of the year. So buying the dip after a poor Jan may not the winning strategy with the Fed hiking rates over the next few years.
https://finance.yahoo.com/news/will-buying-the-dip-pay-off-heres-what-history-shows-114246217.html
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