Buying the dip

For a long time, it was private investors who took every dip in the S&P 500 as an opportunity to buy additional shares. In doing so, they ensured that the damage from corrections was recovered remarkably quickly.

Meanwhile, hedge funds and institutional investors watched from the sidelines as the stock rally continued, missing out on returns. Well, by now, institutional investors have followed the example of the less experienced private investors. They, too, are now on the buying side whenever the S&P suffers a minor setback.

It’s just a matter of time before hedge fund managers join in as well. Then the real stock market party can truly begin.

Sources: iex.nl, Lance Roberts, BofA