WIth the Vix <17, Brent oil<$90/bbl and S&P 500>4350, do you feel that risk is currently mispriced?
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Within 6 months of buying a -10% decline, the average return has been +13% compared to a +4% return when holding stocks through the pullback and recovery. Within 12 months, the "buy the dip" strategy has returned a +22% gain, beating a +5% return with the buy and hold strategy. On the other hand, buying dips over a 5-year period has returned +33%, well below a +75% from simply holding. In other words, buying the dip has been a successful strategy during periods of market volatility.