Buy the Dip

Chart of the Week: Investors are Buying the Dip

December 10, 2021

Director of Research Jeff DeMaso By Director of Research Jeff DeMaso

Buy low, sell high. It sounds easy, but it’s not. Investors pulled money out of stock mutual funds and ETFs in 22 out of 24 months in 2019 and 2020. They only returned to the market this past year.

For investors that may have missed the initial market recovery from the pandemic bear market, the lesson learned is “buy the dips.” As stocks fell in the week after Thanksgiving due to the spread of the omicron variant, investors bought over $14 billion worth of stock mutual funds and ETFs (according to estimates from the Investment Company Institute).

Buy Dip Omicron


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