'Buying the dip' is making a major stock-market comeback in 2023 as strategy heads for 3rd-best year ever

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One of the most effective short-term trading strategies of the past few decades is making a major comeback in 2023 after yielding losses for investors in 2022.

Buying the dip — that is, buying stocks the day after a selloff — is yielding some seriously strong gains for investors in 2023, according to a team of analysts led by Benjamin Bowler, the head of global equity derivatives research at Bank of America Global Research.

These stocks have benefited from a surge of interest in artificial intelligence, a trend that has propelled chip maker Nvidia Corp. NVDA up 164.6% this year. The strategy even became the focus of a popular, if mildly profane, YouTube video that went viral back in 2014.

 

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