Buy the Dip
After a more-than-solid 2013 in the stock market, 2014 has started off with mixed results. The first 15 days of the year showed continued gains and momentum offered by 2013. Then the pullback struck with a near 6% drop over the course of the next 20 days. While the pull back has been swift, the data shows that there are some clues and comforts to worried investors. Since March of 2009 (when our bull market began), there have been a total of 19 “plunges” of 5% or more. The average duration of the plunge is 25 days with very few of these plunges dipping into the double digits. We are nearing that 25 day window and believe, as Jeff Kleintop, chief market strategist at LPL Financial states*, that we should buy the dip and get into a wide mix of equities at discount prices.
noteable “dips” since March 2009
* Source Adam Shell USA Today
