Will Buy the Dip Strategy Fail in 2025? Investors Face Growing Instability Risks

From Investing.com: 2025-02-17 00:49:00

The stock market is seeing a surge in leverage, with retail investors driving leveraged funds to nearly $100 billion, while bearish market bets lag behind, per Bloomberg. The trend of buying every dip is a result of a bailout culture dating back to the 1980s, leading to increased speculative frenzy and market valuations. However, signs of instability in major US stocks are increasing, making the success of the "BTFD" (Buy The F***ing Dip) strategy questionable going forward, as the market becomes more vulnerable to whipsaw patterns. The ripple effects of DeepSeek and the rise of alternative investment opportunities are reshaping the investment landscape, offering new avenues for capital deployment.



Read more at Investing.com: Will Buy the Dip Strategy Fail in 2025? Investors Face Growing Instability Risks