Buying the dip means buying when the market is in a downtrend. The rationale is that as the market indices rise over the long term, so whenever they fall gives a discounted a buying opportunity.
Its true that equity market indices do rise over the long term, but that's because their memberships are continually revised to eliminate poorly performing stocks and introduce better performing stock. So the index is constructed like a ratchet, in which the positive influence will always eventually prevail.
Individual stock prices however are not subject to any such influence and may just as easily fall as rise. The evidence for this is in the fact that the stock index memberships are being continually revised.
So buying a stock on market dips is a 50/50 bet - that's stupid. Betting that the index value will rise is smart.
True i stick to SPY and its options for hedging etc
