‘Buy the dip’ might be the worst advice you’ve ever heard

“Buy the dip!” Recently, whenever stocks fall, headlines claim a dip-buying army will stop the slide and ride a rebound to profits. Unfortunately not.

“Buy the dip” claims say more about current sentiment than success. Heeding them leads to poor returns in bull or bear markets. No matter what you foresee for 2026 stocks, this tactic won’t help you.

Buying the dip typically requires hoarding cash to snap up falling shares. But as my Aug 4 column noted, holding excess, low-returning cash in bull markets is a big opportunity cost. Inflation eats away at it, too. It is a drag on returns – one that grows larger over time due to compound growth.