If you’ve been told to “buy the dip” or that dollar cost averaging is the holy grail of stock market investing, it’s time to pause and reassess.
Hello, fellow Ripples. I’m Chris Miles, your Cashflow Expert and Anti-Financial Advisor. And I’m here to tell you that the strategy many financial advisors promote — to just keep buying no matter what — may actually be working against you.
The Myth of Dollar Cost Averaging
Dollar cost averaging is simple in theory: invest the same amount at regular intervals, no matter the market condition. That way, you buy more shares when prices are low and fewer when they’re high. Sounds smart, right? It is — on paper.
But in practice, especially in today’s overvalued market, this strategy becomes a lazy man’s crutch. Financial institutions love it because it keeps your money in their accounts — and keeps the fees rolling in — regardless of your returns.
Why Buying the Dip Isn’t a One-Size-Fits-All Strategy
The phrase “buy the dip” has become gospel among investors. But which dip are we talking about? The dip in 2020 was short-lived and driven by panic, not fundamentals. Today, what we’re experiencing is a correction — a rebalancing of the markets after years of inflated growth fueled by artificial government spending.
In fact, as I’ve been warning for months, we’re seeing that correction unfold now. Stock prices are falling fast, and most investors are watching their hard-earned money vanish — all while their advisors tell them to “stay the course.”
The Market Is Still Overvalued
Look at the Buffet Indicator — the ratio of the stock market to GDP. It peaked over 200% recently and even after the current drop, it’s still sitting at a historically high 180%. To reach normal levels, the market could drop another 50% from February highs.
And what does Wall Street say? “Just keep investing.” It’s madness. This isn’t a dip worth buying — not yet.
What Smart Investors Are Doing Instead
Smart investors are sitting on cash, waiting for real value. Warren Buffett has over $330 billion in cash for a reason. He’s not buying just because prices went down a little — he’s waiting for real opportunity.
The truth is, if you want real freedom, real control, and real peace of mind, you need to stop gambling with your financial future. You need income-producing assets. Assets like real estate, lending, oil and gas, and alternative investments that aren’t subject to daily emotional swings or AI-driven market manipulation.