Remember dips? Don’t worry we barely do either but there’s a lot of cash on the sidelines right now waiting to pounce. And while federal reserve and government manipulation is making it so that we may never see a noteworthy dip ever again, here are some tips if that ever does happen.
1) Be patient: A 1% decline seems like a lot and probably gets your mouth watering but in the grand scheme of things it’s not enough of a dip to start chipping away. That being said you might not get anything more than that we’re in a bull market after all.
2) Have some dry powder: You can’t buy the dip if you don’t have any money available and the last thing you want to do is take losses to buy other things that are dipping. If you insist on being 100% long make sure to have some hard assets that you can easily convert to cash to take advantage. A car or maybe just a second mortgage are both good ideas.
3) Buy anything: Don’t forget that stocks only go up even when they are going down. These declines are a mirage and the best course of action is plugging your nose, finding any ticker with a pulse and buy. It may seem scary to buy into weakness at such dizzying heights but you literally can’t lose.
Now get out there and buy that dip. It’s free money and nothing could possibly go wrong.