Buy the Dip from a Data Science Perspective
Buying the dip is one of the most debated strategies in financial markets, promising lucrative opportunities amid economic downturns.
Buying the dip is one of the most debated strategies in financial markets, promising lucrative opportunities amid economic downturns. However, in a period of heightened uncertainty—where macroeconomic shocks, policy shifts, and market sentiment drive volatility—blindly buying the dip can be a perilous endeavor.
With the U.S. economy facing changes early in President Donald Trump’s second term, financial markets have exhibited considerable turbulence. Historical parallels suggest that such periods often present both risks and opportunities, but identifying a true market bottom remains a challenge.
In this article, I explore a structured approach to buying the dip, integrating indicators and quantitative models with data science to make informed investment decisions..
Why Do Markets Dip?
Market declines are rarely random. They often stem from structural imbalances, liquidity crises, or shifts in inves…