Quote:
Originally Posted by buzzy
After a slump like this, the brokers and big money management firms typically recommend for the individual investor to buy on the dip. This brings new money into the market, temporarily propping up share prices, so the professionals can sell their shares with some recovery. This cycle repeats as the market falls, and shows up as an extended decline with intervals of saw-tooth spikes. So, buying on a dip is risky in an already overbought market.
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I agree with you. The S&P PE ratio is around 24 today. The long term mean is around 16. Watch out below.