Do you think there will be another market dip?

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Hi Dan and Mat,

While I know there is no way to predict the very bottom of a crash, I was wondering how much more you think the market will sink until it hits its bottom. I am waiting for another drop to buy so far.

Thanks!

Brigitte

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Asked on March 20, 2020 5:39 pm
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Private answer

Hi Brigitte,

The market can certainly dip some more. At its peak, the markets were down approximately 57% from its high during the Financial Crisis. We are currently in the mid-30s.

We don't advocate timing the market, but what we do encourage is averaging into a position. It is a consistent message we have delivered to members. Given the volatility, now is NOT the time to invest whole positions at once.

There is plenty of good value to be had right now. Nibble at the stocks that are attractive, and wait a week (or days given how significantly volatile the market has been) and see where it goes.

But to answer your question, absolutely there can be more downside. To see any significant rebound, I think there needs to be a flattening of the COVID-19 curve in North America or a resolution to the war on the price of oil.

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Posted by Mathieu Litalien
Answered on March 21, 2020 9:20 am