Buying the Dip: A Cautious Approach Recommended by Veteran Trader

Reported 2 days ago

Veteran trader Kenny Polcari warns that buying stocks during price dips isn't always wise, as declines may indicate deeper issues within the company. He highlights past examples, like Enron and Lehman Brothers, where investors suffered significant losses by assuming dips meant opportunities. Instead, he stresses the importance of evaluating a company's fundamentals before considering a purchase, emphasizing that smart investors distinguish between price drops and true value.

Source: YAHOO

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