'A lot of very young people' are going to buy the dip in stocks
Someday, the post-pandemic equities rally is going to end. When it does it will take a lot of newly christened stock bulls with it.
“There's a lot of very young people in the accumulation phase,” said Dan Egan, managing director of behavioral finance and investing for robo-adviser Betterment, who added that younger investors in particular have used selloffs as buying opportunities. “If they have any excess cash sitting around, they're going to use it to buy in.”
Four other times this year, the S&P 500 Index has closed 3% below a historic high, and each time it rebounded to a record, according to data compiled by Bloomberg. That shows how difficult it's been to dislodge the retail traders who have fueled the rally -- as well as the conditioning at work in markets that will inevitably be their comeuppance.
“The dip buyers have stepped in very quickly and bought very quickly and that's one of the reasons we haven't had a full 10% correction -- and frankly I don't think we'll have one this time either for that reason,” said Randy Frederick, managing director of trading and derivatives for Charles Schwab Corp. “Every dip has been bought and immediately paid off within a week or two of not just where it started but above.”
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eatmi2 : Agree
102974065 : Agree
Mcsnacks H Tupack : Randy Fredrick is a liar or an idiot. I’m thinking both. Retailers buying the dip isnt stopping the 10% correction, the Fed is with interest rates and money injections. And whenever they have to stop, it’s all crashing down.
KelvinTan558 : agree
Mr Trecherous Mcsnacks H Tupack : Agree
Mr Trecherous Mcsnacks H Tupack : I found your cousin named Turd
71214130 : I don't think that's fact based since I've recently started day trading and I only hold for a few minutes for less than an hour or so. so for anyone entities or single trader to buy on the dip as if they know what they are doing seems highly implausible for so many to be able to make an impact!
102901491 :
I M POSSIBLE : nuetral on this
Ray2021 71214130 : How's your day trading? better profit?
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