Here's why UBS thinks a trusted stock-market strategy that's worked for years is now a 'losing proposition'

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Buying the dips has been extremely effective during the record US bull market, but UBS strategist Francois Trahan says it's the wrong time to try it.

He says the state of the economy today is very different than it was in December, and the market has shifted into a"risk-aversion" phase.has only been able to deliver positive returns once during"risk-aversion" across the nine cycles we studied," he writes in a note to clients. Those cycles date back 45 years.

That compares with a very impressive track record for the tactic when PMIs are rising only a bit past their peak.A 28-year old wealth manager who oversees $450 million shares her biggest tips for millennials planning for the future — and reveals her own savings strategy

 

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For stocks, ‘buying the dip’ is likely to be a ‘losing proposition,’ says UBS“Buy the dip” has been a rewarding strategy for much of this long-running bull market in the past decade, but there’s something investors need to know:
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