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Not every market dip is a buying opportunity. Here’s what investors need to know

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OCBC’s head of equity research Carmen Lee noted that if the fundamentals of a company are sound, price weakness is an opportunity to accumulate quality stock at lower valuation.

“Buying the dip” refers to a trading strategy where an investor purchases an asset after its price has fallen, expecting a subsequent recovery and seeking to profit from the rebound.

PHOTO: LIANHE ZAOBAO

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SINGAPORE – When markets fall or a sell-off unfolds, investors often face a familiar question: Is it a buying opportunity or the start of a deeper correction?

“Buying the dip” refers to a trading strategy where an investor purchases an asset after its price has fallen, expecting a subsequent recovery and seeking to profit from the rebound.

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