FYI: After a dull slog through the market for much of the year, volatility VIX, -4.07% appears to be back in a big way. And that means the inevitable dips. Fat, irresistible dips. The kind of opportunities capable of sucking investor cash from the sidelines, where it’s been uncomfortably positioned for much of this relentless bull market.
The recent rough market patch delivered the kind of bounce that keeps the buy-the-dip crowd coming back. Triple-digits in the red and — boom! — right back to records. Fun when it works out like that. Of course, it doesn’t always.
In fact, there’s a certain understated “terribleness” to trying to time the market bounces over the long term, according to Samuel Lee of Chicago-based investment adviser SVRN Asset Management and MFO contributor.
Regards,
Ted
http://www.marketwatch.com/story/why-stashing-cash-to-buy-the-dip-is-an-abysmal-investment-strategy-2017-05-22/print
