If you’re a long-term investor, someone smart has probably told you to “buy the dip.” And in many cases, they’re right.
Historically, the stock market has trended upward and has reached new highs after every broad-based decline in prices. That has meant that if you were invested in the broad stock market, even the worst bear markets — dips of 20% or more from recent highs — represented a chance to buy an appreciating asset on virtual sale.
“If you have a solid, long-term investment, it’s always attractive to buy the dip because you always get a new high,” says Jeff Buchbinder, chief equity strategist with LPL Financial. “In the history of the S&P 500, every dip has been attractive because you eventually made new highs.”
But what if you’re already invested in or merely interested in owning one stock in particular that has declined in value? Take SpaceX, whose shares are down nearly 40% from the company’s post-IPO closing high in June, as of mid-afternoon Tuesday. That’s even as shares trended upward on Monday and Tuesday amid investor anticipation of the firm’s first-ever earnings report this week.
Pops like these after a marked decline raise a couple of important questions for investors: Is a slide in an individual stock a signal to jump in and take advantage of a rebound, or a chance to cut bait? And how do you tell the difference?
Here’s what investing experts say on the matter.
Source: https://www.cnbc.com/2026/08/04/when-to-buy-the-dip-on-a-fallen-stock-according-to-investing-pros.html