TechFlow news — On March 14, according to Jinshi News, U.S. President Trump's trade war policies are shaking Wall Street investors' long-held "buy-the-dip" mentality, with a growing number of investors shifting toward profit-taking and wait-and-see strategies.
Dave Mazza, CEO of Roundhill Investments, said: "Buying the dip now is like purchasing discounted concert tickets without knowing who’s performing. Unlike in the past when buying the dip was consistently reliable, the high uncertainty brought by tariffs and trade policies means investors might end up either at a blockbuster hit or a total flop."
Market observers say their diminished enthusiasm for buying the dip stems partly from the absence of typical signals indicating a meaningful market rebound. These include the so-called capitulation event—a broad selloff that signifies market sentiment has become excessively negative and a reversal may be imminent.
Despite increasingly cautious sentiment, data from Bank of America shows its clients have continued buying equities for six consecutive weeks as of last week. Some analysts argue that the current pullback has made risk-reward profiles more attractive, especially for high-quality tech stocks. Tanvir Sandhu, Bloomberg Intelligence's chief global derivatives strategist, said: "It's difficult to know exactly when the market will bottom. Trying to catch a falling knife has never been a good idea."
