Buy the Dip vs. Staying Invested Calculator

Here's an interactive widget illustrating the inferiority of the “buy the dip” idea.

Appreciate that this model gives the dip buyer perfect prescience and timing, deploying cash at the exact bottom of each dip, for the absolute best-case scenario for the market timer. In a qualifying dip year, the market timer is fully invested, capturing 100% of the stock market return for the rest of that year after deploying cash.

I explained in detail why DCA and “buy the dip” are suboptimal in a separate post here.

Check out more financial calculators here.