Buying the dip is basically a phrase investors use when they are purchasing a stock after a big drop because they think it will quickly bounce back.
The problem is that volatility has clearly returned to the market.
The CNN Business Fear & Greed Index, which looks at the VIX and six other indicators of market sentiment, has swung wildly as of late, too.
“This is still an extremely fragile market,” Craig Erlam, a senior market analyst with Oanda, a foreign exchange broker, said in a report.
Higher prices are likely to remain the major focus for investors in 2022, especially if the job market continues to remain strong — which would put added pressure on wages.