After weeks of stock market declines amid the U.S.-Iran war, some investors may be eyeing a chance to “buy the dip,” or purchase assets at temporarily lower prices, which can offer higher returns when the market rebounds. But the move carries risks, some advisors say.
Buying the dip was popular among retail investors during key market drawdowns in 2025. But the trend has slowed since the start of the Middle East conflict.
The strategy “sounds great, but timing it is really hard” since no one can predict future market moves, said certified financial planner Joon Um, managing owner of financial firm Secure Tax and Accounting in Hayward, California.
If you’re experiencing “FOMO” about buying opportunities during the current downturn, Um said, keep in mind that “missing one dip won’t hurt you, but making an emotional decision might.”
The Dow Jones Industrial Average on Friday closed nearly 800 points lower at 45,166.64, while the S&P 500 shed 1.67% and fell to a seven-month low, ending the session at 6,368.85. The tech-heavy Nasdaq Composite dropped 2.15%, sliding to 20,948.36.
