Buy the Dip?

 


Some buying came in today -- particularly for tech and growth stocks. Is this a good time to buy? I don't know and cannot predict the market. But I will explain some reasons why I'm hesitant.

I have already done buying in this range of the SP500 (the green arrows). As such, I don't feel l'd be buying at a substantial discount compared to earlier buys. If I was just starting to invest in growth stocks, I'd consider this an excellent time to begin (slowly) DCAing into some beaten-down growth stocks (such as CRWD, which is in the Model Portfolio).

A couple days does not necessarily make for a reversal. We've seen many false starts this year (the blue arrows). It's tempting to buy when stocks, especially the ones we love, start running up. But that can be premature and especially so considering we are, IMO, likely to see some kind of recession.

If I were starting to invest in growth stocks now and going to DCA slowly, I'd be looking at NOW, PAYC, and NET, too. NET is an extremely volatile and risky stock, but the company is putting up good numbers despite the tough macro environment.

I may post about some blue-chips and "safe" stocks soon. Many of them are, IMO, topping and not the best buys (for now).

Have a great rest of the day!

This website is created and authored by Marlin Sandlin and is published and provided for informational and entertainment purposes only and merely cites my own personal opinions.  I am not a financial advisor, and this website is not intended to constitute investment advice or provide specific advice or recommendations for any individual or on any specific security or investment product.  Any action you take upon the information you find on this website is strictly at your own risk.  This website may share links to articles and information which is interesting to me, but it is in no way an endorsement by me or by anyone associated with me.  The views reflected in the commentary are subject to change at any time without notice.   I may or may not hold investments in the companies or securities discussed on this website.

Marlin Sandlin owns shares of ServiceNow (NOW), Crowdstrike (CRWD) and Cloudflare (NET).

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