Is the 'Buy the Dip' Mantra Becoming a Dangerous Habit in US Equities?
It feels like the market has developed a dangerous addiction to the 'buy the dip' strategy, especially with the resilience we've seen in the major US indices. Every minor pullback is instantly seen as an opportunity, regardless of underlying fundamentals or a real re-evaluation of valuations. We're now at a point where a tiny dip, often intraday, gets scooped up, driving continuous upward pressure. It makes you wonder if we're not just kicking the can down the road, creating an ever-larger potential correction when the music finally stops. I look at certain sectors, and it feels like the current price action isn't fully reflective of the risks, more so a consequence of this Pavlovian response. Change my mind, or at least give me some solid pushback. I'm keen to hear opposing views.