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Buy the Dip! Why NOW could be an excellent opportunity to buy stocks

September is once again living up to its reputation as a crash month. Recently, technology stocks in particular have fallen significantly in value. But for one reason in particular, investors should not panic now, but rather use this potentially excellent opportunity to buy more stocks.

September was considered the worst month ever on the stock markets, and rightly so. With a historic return of -1.1 percent in the S&P500, this period of the year is by far the most negative.

At the beginning of the month, September is once again living up to its reputation, as the American and European stock markets saw a significant sell-off – especially in technology stocks.

Why now could be an excellent opportunity to buy stocks

However, the current weakness in the market is less of a reason to panic than one might think. In fact, the sell-off may be an ideal opportunity to buy more, especially considering this statistic:

Average performance of S&P500 in the 4th quarter
Bloomberg

Average performance of S&P500 in the 4th quarter

After a seasonally very weak September, the fourth quarter followed, which is historically the best part of the year on the stock market. This quarter not only makes up for the losses from the previous month, but also generates high returns.

Is it now time to buy the dip?

Would it be better for investors to take advantage of the low prices now and then profit from a statistically probable year-end rally, rather than exiting stocks accordingly? In the latter case, there is also the risk that the stock market will run away from investors.

Incidentally, the expert Tom Lee from Fundstrat recently advised using the sell-off to buy more shares. You can find out more about this in this article.

You can read about which stocks now appear attractive and cheap in this article from BÖRSE ONLINE.

Also read:

Next day of panic on Wall Street – What experts are saying about stocks, the stock market, etc.