LleyZ
03-06

Buying the dip can be a powerful strategy, but timing and risk management are key. While Nvidia and Tesla have seen significant declines, it’s important to differentiate between a short-term correction and a deeper market downturn.

For long-term investors, Dollar-Cost Averaging (DCA) into fundamentally strong companies can be a smart move, allowing for accumulation at lower prices without the stress of timing the exact bottom. However, caution is warranted—if macroeconomic conditions worsen, further downside is possible.

Rather than fearing another 15% drop, it’s better to focus on quality stocks with strong growth potential and adjust risk accordingly. Historically, markets tend to recover, and those who stay disciplined often come out ahead.

What’s your strategy—DCA, waiting for a lower entry, or avoiding dip-buying altogether? Let’s discuss!

[Event] How To Pick Quality Companies When It Is In The Dip?
Since the beginning of the year, the market has been continuously declining, with the S&P 500 losing $5 trillion in value over 16 days. The price-to-earnings ratios of several star stocks have dropped to lower levels. While Nvidia's forward PE remains around 25, its PEG is only 0.73, indicating it is undervalued. For companies that are not yet profitable, one can look at P/S or P/B ratios. Additionally, ROA and ROE can be used to filter undervalued, high-quality companies. Do you have any tips or indicators for selecting good companies during a market downturn?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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